Conflux eSpace Liquidity Incentive Program [Open For Discussion]

Conflux Foundation is launching the eSpace Liquidity Incentive Program to help bootstrap and drive sustainable ecosystem development on Conflux eSpace. 1 billion CFX will be allocated with the mandate to provide liquidity incentives to any eligible DeFi projects building on Conflux!

Who is eligible?

  • This program will be open to all DeFi projects building on Conflux.

  • Priority will be given to projects who agree to airdrop project tokens to Conflux stakers.

How will the program work?

  • Once the program is officially launched, projects will be able to apply directly via an online application form.

  • Projects will receive incentives based on a time weighted average TVL calculation (details tba).

  • Rewards will be tiered to support both early-stage projects pre-launch, and existing projects already deployed on Conflux eSpace with verifiable TVL.

  • Liquidity incentives will be delivered via a basket of tokens.

  • Participating projects will airdrop project tokens to Conflux stakers.

  • Conflux Foundation will additionally airdrop staking rewards from program to Conflux stakers.

What is next?

More information on Conflux’s Liquidity Incentive Program will be released shortly, so stay tuned!

In the meantime, if you or your project are interested in learning more and joining the waitlist for early access, please fill out the contact form or get in touch with one of our team members! **[https://forms.office.com/r/vp2Fjw8Y4h]

The Conflux Foundation wants to know what are the community’s thoughts on this. Leave your comments below!

5 Likes

Yes. Liquidity brings more liquidity. Defi on eSpace has the potential to bring the most users and exposure to the Conflux ecosystem.

I firmly believe that projects and users landing on eSpace will eventually utilize both spaces for their own strengths.

Easily available liquidity will bring more projects to Conflux

User experience on eSpace has the potential to be better than other Ethereum Level 2 networks.

User experience on Core space is already better than any other network I have tried.

1 Like

Hi. It’s a great incentive. But here a list of questions + proporsals:
Q1: Why only Conflux eSpace?
Q2: What about projects on Conflux Core?
Q3: DeFi projects must be launched /started on eSpace for have a chance participate in program?
Q4: DeFi Projects which are migrate or wrapped their native tokens on Conflux can participate?
Q5: About airdrop, why only Conflux Stakers? If project simple provide airdrop or bounty campaigns ( community boost activities) it’s not good?
Q6: Unit of account of TVL? (USDt, BTC, ETH, CFX, сUSDT)?
Q7: Who are and how must be “verify” TVL?
Q8: According to specifications of internal DualSpace character of Conflux and meaning only eSpace in overview, needs clarification about TVL- total value locked where: in cross-space(eSpace <—> Core) bridges, swap gates, or in cross chain (eSpace <—> BSC as example) based on eSpace?;
Clarification about Staking and Liquidity:

  1. Staking have same as hold effect on markets, coz staking based on asset locking. Massive staking dropped liquidity of staked assets, coz effective tokenomic model suggests staking rewards amount a much less than amount of locked in stake issued tokens.
    But on other hand PoS Pools with good APY stimulate buy pressure and drop sell pressure of staking asset.
    *asset = crypto tokens, native coins.
  2. Liquidity (source investopedia) - Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most liquid asset of all is cash itself.
    Key Takeaways:
    Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price.
    Cash is the most liquid of assets, while tangible items are less liquid. The two main types of liquidity include market liquidity and accounting liquidity.
    Current, quick, and cash ratios are most commonly used to measure liquidity.
    In DeFi and cryptospace we use definitions same as:
  3. Liquidity Mining, also well known as yield mining;
  4. Liquidity Pools (LP);
  5. Liquidity Providers;
  6. Liquidity Operators.
    According to clarification, logic question:
    Q9: why Stakers would be get liquidity program rewards?
    Q10:What liquidity we want to up?

P1: Add support of Conflux Core projects to program.
Workflow: As we all understand, liquidity program must be aimed on whole Conflux Ecosystem and boost #CFXuse, according to investopedia, CFX same as Cash, any operation/transaction in Conflux Network ( no matter eSpace or Core) required CFX for gas/ tx fees. eSpace operation most expensive, than Core. Core is native space of Conflux=Conflux Core. Conflux Blockchain System can work well without eSpace, but eSpace cannot work without Core. So why only Conflux eSpace projects?

P2: Update Program with right definitions and set clarifications/suggest, create and share exact list of DeFi projects that can be apply to program:
Same as:
“List of priority DeFi Projects

  1. DEX,
  2. CrossChain or/and CrossSpace Bridges/Gates
  3. Multi assets Staking Pools;
  4. Multi assets Farming Pools;
    Project must based on Conflux Blockchain, project protocol must be deep integrated with Conflux tokenomic and required CFX for operations.”
    As definition example: “Stakers” not used in terms of liquidity exact processes, but “Stakers” used in DeFi very often. PoS pools also very often set as liquidity tool, but as we see it’s not so correct.
    But here not really any logic explanation why CFX Stakers must be extra granted via liquidity program airdrop.
    P3: Update name of program as result: CFX or ConfluxVerse Liquidity Boost Campaign” as example .

It’s in short and main. Thanks for your time and wait community feedback.

7 Likes

good suggestions

2 Likes

Thanks for your questions and suggestions @Mitrandir.

Below is a Q&A for the Liquidity Incentive Program. If the community has any more questions, please reply to this post! :slight_smile:
**
Conflux eSpace Liquidity Incentive Program FAQ

Is the Liquidity Incentive program only available on eSpace?

The Conflux eSpace Liquidity Incentive Program will at first be only available to projects building on Conflux eSpace. Our deployment of Conflux eSpace is a new major addition to our ecosystem and we hope to maximize this opportunity. Conflux’s eSpace provides full EVM compatibility, including wallet like MetaMask, and believe it will be the center of growth on our chain in the short term. In the future, we plan to extend the Liquidity Incentive Program to the rest of the Conflux ecosystem.

Do DeFi projects need to be already launched on Conflux for a chance to participate in the program?

The Liquidity Incentive program will be open to both projects already launched on Conflux eSpace, and projects with plans to deploy on Conflux eSpace. The program’s rewards will be tiered, with specific tiers designed to support projects that have yet to deploy on Conflux eSpace and are looking to bootstrap their liquidity, and other tiers designed to support existing DeFi projects looking to scale their TVL on Conflux.

Can projects with wrapped tokens on Conflux participate?

Yes projects with wrapped tokens will be able to participate in the program. Conflux believes in a multichain world, and wants to encourage innovation in cross chain DeFi.

Why are projects tokens only being airdropped to Conflux stakers?

As a part of the program, we are asking participating projects to airdrop a portion of their projects tokens to Conflux stakers simply because we believe that users who are already staking CFX on Conflux are a great target market for DeFi protocols looking to deploy on Conflux. We want to create positive feedback loops in our community, but at the end of the day projects can airdrop however many of their own tokens to whoever they want.

What is the unit of account for TVL?

TVL will be calculated based on many other digital assets, with CFX being the most heavily weighted asset in the calculation to support our strategy of creating positive feedback loops for the Conflux ecosystem. Prices for all tokens, and the TVL value will be denominated in USD.

How can projects verify their TVL?

TVL will need to publicly Projects will need to share the necessary smart contract addresses of their protocol on Conflux eSpace that hold funds in order to verify their TVL. It is recommended that these smart contract addresses are verified on Conflux Scan, and that the project’s team makes it clear how TVL is calculated in their protocol.

Thanks @Geoff for your answers and time.
Some answers create new questions :slight_smile:

Conflux’s eSpace provides full EVM compatibility, including wallet like MetaMask, and believe it will be the center of growth on our chain in the short term.
As I understand main reasons it’s a:

  1. full EVM compatibility - good reason,but some contrargue:
    a) Where CFX mined and issued? What Space in Conflux Ecosystem provide security on both Spaces? What Space act parent role? What Space is consensus Space for both spaces?
    List of Questions have one answer: Conflux Core - native Space, heart of Conflux Ecosystem, security shield, engine of Conflux Blockchain;
    b) Conflux eSpace was created as gate to Conflux Native Space, created for make more easy and comfortable integration Conflux Ecosystem with other Ecosystems, that means eSpace was created to increase liquidity on Native Space via cross-chain - cross-space operations. Deploying DApps on Core, eSpace-Core DeFi services, or im not right? But if we motivate liquidity ONLY on eSpace it’s means we motivate decrease liquidity on Core, motivate drop interest to build on Conflux Native Core.
    c) When we confirm tx on eSpace, who get fees for that? Where is motivation would be for miners protect and support native Core if they can be get more profits on eSpace?
    d) And let’s turn to Conflux History: as we all well know and remember CFX launched as EVM like chain, with full EVM compatibility, with same addreses format as ETH and was hardforked on own address format=activate difference from EVM like chains. It’s make CFx unique and shown individual way in technology development. But provide now support only for eSpace it’s looks like Conflux turn back on launch stage.
  2. “MetaMask support of eSpace”. - it’s really very strange argue. Coz at first here we have Coin98, Cobo, BitPie, DCent wallets that support Core. At second here not needs to do anything ( as in Coinbase Wallet or MathWallet) for add custom EVM like chain in most of available HD wallets. Coz it’s a basic open free feature. That’s all known well in Cryptocommunity. But on other hand we all known Trust Wallet it’s very popular, so if we say about eSpace as a center of growth Conflux Ecosystem, where Trust Wallet support of eSpace? Trust Wallet required listing fee that not refunded, if listing request would be decline( 1000 TWT or 5 BNB may be here is a problem?)
    So, when we head argue about MetaMask support of eSpace, it’s mean same as we not need to wait own mobile wallets from team and we not needs to wait support of Core of all others top HD wallets, right?
  3. About Airdrop to Stakers.
    At first some clarification.
    Q: PoS nodes and staking available on eSpace? A: No.
    So for airdropped something projects must be issued tokens on Core.
    For provide airdrop to Stakers, who are dicrease liquidity, we are not see any problems in using Core.
    But for include in liquidity program Core projects and motivate DeFi startups build on TOP of native Core Space, motivate provide support and development progress of own Conflux Technology we vote - no.
    Looks strange. So when we try to act «for getting positive feedback loop» would be good to get and hear feedbacks before launch any incentives. It’s good practice.
    So, if we wants really provide thanks to miners/supporters of Conflux Blockchain at first we must provide thanks giving to PoW miners, coz as well all known that PoW it’s a most fair, decentralise and built on top of real useful work volume that miner share on network via his Hashes. It’s more socialistic. PoS is a clear capitalism system : money earn money. Not less, not more.
    So provide airdrop to PoW miners or to liquidity provider of CFX , to DApp for Core-eSpace operations. Why not, why stakers lol? And on what rules project must provide airdrop? Who get more? Who get less? Who not get anything ? Whitelist or how? And keep in mind that airdrop at main part it’s a dump.
2 Likes

TVL will be calculated based on many other digital assets, with CFX being the most heavily weighted asset in the calculation to support our strategy of creating positive feedback loops for the Conflux ecosystem. Prices for all tokens, and the TVL value will be denominated in USD.

  1. “CFX being the most heavily weighted asset” - if I right understand it’s mean that planned to locked CFX much many than any other assets on eSpace, in DeFi products that participate in Liquidity program.
  2. “TVL value will be denominated in USD”
  3. “ Projects will receive incentives based on a time weighted average TVL calculation (details tba).”
    So I’m need to ask again. Average TVL would be calculated based on USD equal Value Locked or on amount of assets locked? What time frame would be used for calculating average?
    TVL verification and project apply in program.
    Who would be verify TVL and who would be apply a projects in program?
2 Likes

FAQ

Q. How will the airdrops from the Liquidity Incentive Program distributed to the PoS staking users?

A. The Liquidity Incentive Program will directly airdrop project tokens to all individual addresses that stake CFX in any PoS pool or as a node. Each individual address will be eligible to receive the airdrop. The amount of airdropped tokens will be weighted and will depend on the amount of staked CFX.

To determine the amount of airdropped tokens:

  • The project will take a network-wide snapshot at an agreed-upon time.
  • Every individual address that is staking will be eligible.
  • Once the addresses are fetched, each address will be assigned a weight based on the amount of CFX that the address is staking.
  • Airdropped tokens will be transferred to the corresponding eSpace address.
  • Conflux is developing a tool that will be released soon to airdrop these tokens along with accompanying tutorials and documentation.

Q. Are FC holders eligible for the airdrop?

A. No, only PoS stakers are eligible to receive the Liquidity Incentive Program airdrop.

2 Likes

Where you Swappi Support that you promise on 30 April?

How will it work with PoS Pools and their delegators?
Will the reward cfx be distributed to the pool and delegators claim it as standard PoS reward or is the distribution somehow direct to delegators?

Hello @Geoff, nice to meet you. I have observe swappi liquidity incentive program. I want to confirm does the program work like these:

  1. Conflux Foundation (CF) will bought some amount token. Using the token and CFX, CF will provide LP in dex/swappi
  2. Using LP tokens from point 1, CF will stake on LP mining program, to retrieve bonus token
  3. Those bonus token will be distribute to CFX pos staker

If the program run like those 3 points, we have some questions:

  1. Does CF buy the token directly from market/dex or buy directly from project’s founder
  2. Does project must have LP mining program to be eligible for liquidity incentive program
  3. Does CF open for other scheme for this liquidity incentive program? For example using nft mining

Look here how LIP work in real : To Conflux Foundation:About the PPI dump event
check that: Swappi Second Inject CFX Amount Calculation