Obsidian Swap Launches New Liquidity Pool Incentive Program to Boost DeFi Ecosystem on Cronos Chain

Innovative program offers token projects a pathway to increased liquidity, visibility, and staking options, fostering growth on the Obsidian platform

Key Takeaways

• Obsidian introduces a liquidity pool program to incentivize top-ranking tokens on its weekly leaderboard.

• Collected aggregator fees from token trading volumes will be reinvested in TOKEN/CRO pairs, bolstering token liquidity.

• Projects can choose between staking rewards or liquidity growth, with options for direct impact on token scarcity.

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In a fresh move to support token projects within the Cronos Chain ecosystem, Obsidian Swap has announced its Liquidity Pool Incentive Program. This initiative, now live on the platform, targets projects with substantial buy volumes and high leaderboard ranks, offering them a chance to bolster their liquidity and gain increased visibility. The program reaffirms Obsidian's commitment to building a comprehensive decentralized exchange (DEX) platform that goes beyond aggregation, helping projects create a solid footing in the decentralized finance (DeFi) space.

Liquidity Pool Incentive Program Highlights

Obsidian’s incentive program is designed to drive liquidity growth for tokens that demonstrate both volume and leaderboard performance. To qualify, tokens must meet the following criteria:

1. Top 10 Leaderboard Ranking – Tokens must be in the top 10 of Obsidian’s weekly leaderboard based on buy volume.

2. Minimum Buy Volume – Tokens need to achieve a minimum buy volume of $10,000 in a given week.

Qualified tokens gain access to three unique benefits:

1. Liquidity Pool Creation
   Obsidian will set up liquidity pools for eligible tokens, increasing their accessibility for users on the platform. These pools ensure there is sufficient liquidity for seamless trading, enhancing both exposure and ease of transactions.

2. Aggregator Fee Collection and Liquidity Zapping
   Tokens in the incentive program are charged a 0.5% aggregator fee on trading volume, which is then converted into liquidity for the token’s TOKEN/CRO pair. For example, a $20,000 trading volume would generate $100 in fees, which is added to the token's liquidity pool. The added liquidity is subsequently burned, effectively reducing the token’s circulating supply and increasing scarcity.

3. Staking Pool or Liquidity Pool Opt-In
   Top-ranked tokens have the flexibility to opt for staking rewards or to direct the collected fees towards increasing their TOKEN/CRO liquidity pool on Obsidian. This feature provides projects with the choice between rewarding token holders via staking or enhancing liquidity to support long-term growth.

Program Timeline and Review

The incentive program will initially run for two months, starting on November 10, 2024. Obsidian plans to evaluate the program’s performance and may extend or adjust its features based on community engagement and project participation.

Benefits for Projects and Token Holders

• Enhanced Liquidity – By participating in Obsidian’s program, tokens gain higher liquidity, which contributes to smoother and more efficient trading.

• Greater Exposure – Top-ranked tokens receive increased visibility within the DeFi ecosystem.

• Flexibility in Rewards – Tokens can decide between staking pool rewards and liquidity growth, aligning with project goals.

• Token Scarcity – The burning of added liquidity decreases overall supply, potentially driving up token value.

Participation and Eligibility

To join the program, tokens must meet the leaderboard and volume criteria and opt into the LP program. Exclusions apply to tokens paired with $ROBIN, as these already have dedicated liquidity injections.

A New Era for Liquidity on Cronos

Through this Liquidity Pool Incentive Program, Obsidian is set to play a transformative role in Cronos Chain’s ecosystem, empowering projects to leverage liquidity and improve token economics. By giving projects the tools to increase liquidity and scarcity, Obsidian establishes itself as a versatile DEX that not only aggregates but actively supports growth and sustainability in the DeFi landscape.

For more details on participation and program rules, visit Obsidian’s wiki page.

Source: Obsidian post on X, Official Documentation