Radix to Attract Liquidity with More Than $10 Million in Incentives

Radix 10 million USD incentives liquidity provider DeFi

Project Ignition meant to attract USDC, USDT, wBTC, and ETH

Radix Network entered its next stage for user acquisition and launched Project Ignition to attract liquidity. With this program they will match each dollar provided by liquidity providers with an equal amount of XRD, therefore doubling the liquidity provided. 

Project Ignition offers over $10 million worth of incentives for liquidity providers. Starting 14 March, the liquidity initiative will become available through three leading decentralized exchanges on Radix: Ociswap, CaviarNine, and DefiPlaza.

Users who provide liquidity through specific liquidity pools will need to lock their liquidity between 9 and 12 months. Users only provide liquidity on the wBTC, USDC, USDT, or ETH side, and through Project Ignition, the XRD tokens will be provided. 

They will also immediately receive an unlocked payment in XRD equal to between 12.5% and up to 20% of the value of the tokens they provided in the liquidity pool. The exact amount of that payment, however, depends on the lock-up period, which can range from 9 to 12 months. 

What about impermanent loss

In a liquidity pool, you provide two tokens. When one token heavily outperforms the other, liquidity providers would’ve been better off simply holding the performing token. Their profit would not be what it could’ve been. Often, even staking rewards can’t completely outperform impermanent loss. Project Ignition solves this problem by letting users only supply the non-XRD token. 

Users only provide liquidity on the wBTC, USDC, USDT, or ETH side. Moreover, if the provided liquidity outperforms the native Radix token XRD, the liquidity provider receives a value guarantee for up to a 4x outperformance of the provided asset. It’s hard to lose, but it’s not impossible. 

In the most troubled scenario, there’s always a risk of impermanent loss. For example, if the value of XRD drops so much that even provision rewards from the exchanges and the XRD compensation can’t cover the loss of value, another disaster scenario would be if the liquidity dries up and there’s no demand anymore. Therefore, participating liquidity providers need to be comfortable with the idea of illiquidity risk before participating in Project Ignition.

How to participate in Project Ignition

Project Ignition launches on 14 March across three DEXs on the Radix Network: CaviarNine, Ociswap, and DefiPlaza. Anybody can participate and earn rewards through these 3 platforms. This is how you do it:

  1. Complete the KYC process using Instapass. [Find a detailed KYC guide here]
  2. Authorize Instapass to connect with your Instabridge account and log in using MetaMask. [See the guide for help]
  3. After KYC verification and linking your account, you’re set to bridge and swap tokens between your Ethereum wallet and the Radix Wallet.
  4. ridge your USDC, wBTC, ETH, or USDT to Radix to receive the corresponding xAssets (xUSDC, xwBTC, xETH, xUSDT).
  5. Visit CaviarNine, Ociswap, or DefiPlaza and select “Project Ignition.”
  6. Choose a Project Ignition-compatible liquidity pool to contribute to.
  7. Decide on the duration of your liquidity lock-up, which can be 9 to 12 months.
  8. The DEX will then prepare a transaction for your provided liquidity, and Project Ignition will match the value with XRD tokens.
  9. The user’s liquidity and the matched XRD tokens are then deposited into the selected DEX pool.
  10. Receive an immediate XRD reward of 12.5% to 20%, along with an Ignition LP Claim token.

At the end of the lock-up period, you can claim your original liquidity, accumulated trading fees, and any additional incentive tokens from the exchanges.

Closing words

Radix has been unrelentingly committed to transforming Web3 and DeFi, creating a technology stack designed to steer the industry away from the complexities, exploits, and hacks that have long hindered its full potential.

With the Babylon Upgrade in 2023, this technology stack went live, resolving the issues our industry has had to put up with since its inception. How? By simply doing the right thing, not the easy thing. 

Yet, in pursuing excellence, a single word often echoed in response to the eager queries of “When?” – “Soon.” But as 2024 unfolds before us, “Soon” has evolved into “Now”.

Project Ignition marks the start of #Breakout2024, marking not just a year of change but the dawn of an era where Radix emerges as an industry leader. 

Throughout 2024 you’ll see exactly the type of momentum and developments you’ve patiently waited for, from new integrations like LayerZero, surges in institutional capital entering the ecosystem, user-onboarding campaigns, innovative dapps, and scalability demonstrations.

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Disclaimer — This is a sponsored article. DappRadar aims to provide accurate information, but readers should always do their own research before taking action. Articles by DappRadar can not be considered as investment advice.

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