👩🏫Introduction
What is the $FYN Liquidity Program?
The $FYN Liquidity Program is an initiative designed to improve the liquidity of $FYN. It consists of the following core actions:
To increase $FYN accessibility by creating a Liquidity Pool¹ on the widely recognized Uniswap decentralized exchange
To improve $FYN liquidity by encouraging community members to provide $FYN liquidity on Uniswap
What problems do a lack of liquidity cause?
❌ Dampened User Adoption
New users entering the Affyn ecosystem may encounter difficulty acquiring $FYN due to a lack of trading depth. This can lead to frustration and impede user onboarding, ultimately slowing down ecosystem growth.
❌ Limited Price Discovery
Low liquidity makes it challenging to accurately determine the fair market value of $FYN. This creates uncertainty for potential investors and users, further hindering adoption and ecosystem expansion.
❌ Stifled Utility and Engagement
Low liquidity restricts the potential for users to fully utilize the diverse functionalities of $FYN within the Affyn ecosystem, stifling overall user engagement and satisfaction.
❌ Negative Market Perception
Persistently low liquidity can send negative signals to the wider cryptocurrency market, raising concerns about the stability and long-term viability of the Affyn ecosystem. This can harm investor confidence and deter potential partners, further limiting growth opportunities.
Why Should I Provide $FYN Liquidity?
✅ Earn Fees from Trades
Liquidity providers earn a share of the fees generated from trades that occur in the liquidity pool. Uniswap charges a fee for each trade, and this fee is distributed among liquidity providers based on their share of the pool.
✅ Potential for Capital Gains
Liquidity providers may experience additional capital gains on top of the trading fees earned.
✅ Earn Liquidity Provision Bonus
To kickstart the program, we offered exclusive rewards to users contributing liquidity to the official Uniswap V3 Liquidity Pool during the campaign period.
Note: The Liquidity Provision Bonus campaign has ended.
¹ A liquidity pool is a group of tokens that are locked in a smart contract and used for trading between assets on a decentralized exchange
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