SNX/USDC trial sponsored by on-chain platform Synthetix is scheduled to go live on Market Maker Balancer.
Synthetix which recently launched its Altair upgrade with plans to subsequently launch two other upgrades disclosed this announcement via an official blog post. According to the crypto-backed platform, Synthetix will be funding the trial on Balancer for four weeks.
Details on Balancer
Known as an Automated Market Maker (AMM) protocol, Balancer features Liquidity Bootstrapping Pools (BLP).
Alongside its BLP feature, plans are in place to launch a tool that facilitates the building of private pools. Notably, the tool will also enable easy management and customization of these pools.
Balancer commenced liquidity Mining on Monday, June 1, 2020, at 00:00 (UTC). Giving a chance for the community to raise any issues with the calculations and review them if necessary.
The mining proposal has been designed to equally involve all parties. The community will also be able to review pool calculations and point out any disparities they might find. Questions are also welcomed, they will be attended by the Balancer team. Any token available on “CoinGecko is eligible”. Balancer, however, warns against trying to game the distribution process.
Synthetix SNX/USDC pool
Balancer BLP Liquidity Bootstrapping Pools (BLP’s), allows “for an 80/20 or 90/10 split between assets”. Therefore, creating a pool with particular liquidity. And subsequently, without the capital limitations of equating its value 50/50 with Ethereum or any stablecoin.
Synthetix will be operating a 90/10 pool. That is, 90% SNX and 10% USDC. With this in mind, liquidity providers will also receive a weekly incentive of 8,000 SNX tokens. They might also receive BAL tokens on Balancer. Find out more about the distribution scheme here.
To participate, users will need to provide SNX/USDC liquidity on Balancer. Next, is to stake BPT tokens into LP contract using Mintr.
All rewards will be remitted manually every Friday at approximately 1 am (UTC). The trial began alongside Altairs launch on June 5, 2020.