The first TEL liquidity mining pool is going live on Uniswap V2!
By: Parker Spann
Today, we are excited to announce the first TEL liquidity mining pilot program!
As we recapped in last week’s Community Update, Telcoin’s first launch on Uniswap has been a resounding initial success. That is just the start.
As we approach the release of our live global remittance product, one of Telcoin’s main priorities is to make TEL exchange and transfer costs lower than any existing remittance product in the world. While initial remittance corridors are being turned on as fiat-only, we are of course also rolling out fiat-crypto rails in parallel with the objective of these eventually merging. An important requirement for them to merge is a stable and liquid market for the TEL token.
The design goal of TEL liquidity mining is to bootstrap liquidity in order to reduce transaction costs — such as slippage —for TEL end users.
The goal of the liquidity mining program is to understand:
- How much TEL is required to bootstrap x amount of liquidity?
- How effective is liquidity mining at organically increasing pool size?
- How do LPs acquire TEL to start providing liquidity?
- What percentage of miners sell their TEL mining rewards immediately?
- Do we believe TEL liquidity can scale linearly with the size of our user base via liquidity mining?
TEL x Uniswap Liquidity Mining Details:
If you aren’t familiar with Uniswap or DEXes, please review Diving into DeFi Volume 2 and Telcoin x Uniswap before proceeding further.
What is liquidity mining?
Pioneered originally by Synthetix, liquidity mining is the process by which token holders mine token inflation with capital resources. In the context of TEL liquidity mining phase one, miners are providing the valuable service of creating deeper volume depth closer to the market price in order to reduce transaction costs.
As we’ve previously mentioned, the role of TEL inflation is to incentivize new partnerships and acquire new users, and this style of mining fits perfectly into that scope and will evolve dynamically with the best possible product offerings in DeFi.
Using the data from this program and future ones, we will continuously improve TEL mining, use other novel TEL mining models to bootstrap product and corridor launches, and conduct similar programs on other AMMs like Balancer — which we may also use within the money flow of the Telcoin application.
What are the details?
TEL liquidity mining will commence 1 September 2020 at 15:00 UTC and will continue until 1 October 2020 at 14:59 UTC. Miners will earn a total of 5,000,000 TEL per period proportionally based on pool ownership. There are four periods and a total of 20,000,000 TEL will be distributed (more details available here).
Telcoin will take random snapshots of the TEL/ETH pool on Uniswap V2 throughout each period. Mined TEL will be distributed a month later based on the total amount of liquidity held from the beginning to the end of each period starting at 15:00 UTC each week. Any liquidity added after the beginning of each time period will be ineligible for mining.
For specific information regarding how each weekly time period is calculated and when rewards are distributed, please review the TEL mining schedule.
Telcoin and its subsidiaries are ineligible for mining.
How do I participate?
Simply provide liquidity to the TEL/ETH pool on Uniswap V2. If you aren’t sure how to do that, please review our guide.
What are the requirements to be eligible?
You must have locked liquidity equal to or greater than 0.5 ETH in the TEL/ETH pool. Additionally, you must whitelist your address here and your liquidity must be locked for the entire period, each period, to receive rewards.
BONUS
Congratulations! If you had liquidity greater than 1 ETH in the TEL/ETH pool on Uniswap prior to this announcement on Thursday, August 27th at 21:45 UTC, you will be receiving a share of a 2,500,000 TEL, proportional to your percentage of pool liquidity, at the first distribution in October!
Send Money Smarter. Earn Money Smarter. Telcoin.
Disclaimer
Please remember that you cannot control the amount of any individual token you get out of the pool. Sometimes the amount can consist of a larger share of ETH than TEL or vice versa.
Telcoin has no control over funds lost on Uniswap.
Telcoin reserves the right to cancel or modify liquidity mining at any time.
