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Liquidity Mining

The FinNexus Options Liquidity Mining DApp rewards participants with extra FNX for providing liquidity to the FNX/ETH Uniswap Pool

About FNX Liquidity Mining

A healthy FNX ecosystem requires deep liquidity pools so that community members may enter larger FNX positions with as small a price slippage as possible. Though FNX is also listed on a variety of centralized exchanges, Uniswap will remain a major gateway into the FNX ecosystem on Ethereum.

FNX ERC20 tokens will be distributed as rewards to liquidity providers to the FNX/ETH pool on Uniswap V2.

As the team indicated here and here in previous discussions about bootstrapping network effects to ensure FNX token value capture, the token bucket in our whitepaper and tokenomics reserved for Variable Issuance will be used for liquidity incentives. This category of tokens, 75 million in total, is intended to be distributed to active and engaged FinNexus ecosystem participants over the next 5 to 7 years. We store these FNX tokens at this Wanchain address.

The FinNexus team hopes to institute more rewards for liquidity provision across other Uniswap pairs and perhaps even other protocols such as Balancer and Bancor. We are particularly keen to test our thesis that such a reward program leads to deeper liquidity pools as well as the durability and persistence of that depth.

We plan to have a series of liquidity mining activities, We are excited to continue supporting Uniswap while increasing the depth of our FNX/ETH pool on Uniswap.

Mining Periods

There will be multiple periods of liquidity mining. Follow us on Twitter to get the latest updates about new liquidity mining activities.

# Start Date End Date Expected Return Rate Platform
1 Aug. 21st, 2020 Sept. 20th, 2020 ~600% Uniswap
2 TBA
3 TBA
...n TBA

DApp Web Portal

Liquidity Mining DApp - Watch the video or continue reading below for instructions on how to use the DApp

Video Guide

Liquidity Mining DApp Video guide

Step by Step Guide

To stake and begin earning FNX liquidity mining rewards:

  1. You must first provide liquidity to the FNX/ETH pool on Uniswap V2. You will need to deposit an equal *value *(not the equal amount) of FNX ERC20 tokens and ETH coins into the pool.

  2. After successfully contributing your crypto (you will need to approve FNX and/or ETH to interact with the Uniswap smart contract first), liquidity providers will receive UNI-V2 pool tokens. These UNI-V2 tokens represent your share of the FNX/ETH liquidity pool. You can track the size of the pool and your share of it here. The share of liquidity provided by FinNexus Foundation located here will of course be excluded from earning rewards. Please note that merely providing liquidity will NOT earn you FNX rewards, you MUST complete the next step.

  3. Visit the mining UI (which will be on liquidity.finnexus.io). With the UNI-V2 tokens from the previous step in your address, enter the amount of FNX/ETH UNI-V2 tokens you want to stake from your wallet. Once you have completed this step, you will begin to accrue FNX rewards.

Distribution of FNX

The specific distribution rules will be as follows:

  1. FNX will be distributed based on the staked amount of UNI-V2 tokens from each address in the rewards contract.

  2. The number of FNX rewards accrued is according to the balance of the staked UNI-V2 tokens in each address and the time staked. Thus, liquidity providers will be rewarded for both the time in the pool and the amount of FNX and ETH in the pool. Earlier stakers and stakers with higher value of stake will earn more FNX during this incentive program.

  3. The mining reward is 0.5 FNX per day when staking one UNI-V2 token.

  4. FNX rewards accrue in real-time. Token holders who have staked their FNX/ETH UNI-V2 tokens will need to “claim” their FNX token rewards on-chain. Unlike other yield farming programs, these rewards will not be automatically distributed. Please be aware of the ETH gas fees required to claim your FNX rewards.

  5. Liquidity providers also earn a pro-rata portion of the trading fees that accrue to the pool. With each transaction, the Uniswap Protocol assesses a 0.3% fee that accrues to the pool itself with each trade. When liquidity providers “withdraw” their UNI-V2 tokens from the mining UI (will be on liquidity.finnexus.io), they will also be able to access their portion of accumulated transaction fees in the FNX/ETH liquidity pool.

  6. The time for depositing UNI-V2 tokens and the start of the FNX rewards accrual will be announced shortly.