Double mining-a DeFi tool with double benefits

What is dual mining and why did KSwap develop it?

Dual mining is a novel model that can not only bring cooperation with other ecosystem projects, but also bring additional rewards to users. Users can simultaneously harvest KSwapFinance tokens (KST) and tokens from other projects in the dual mining pools.

KSwapFinance aims to open a window of opportunity so that cooperative projects and users can benefit from it. This may be a win-win outcome. The actual goal of a new project is to develop its user community as soon as possible, so the project will seek to be listed on the top-ranked decentralized exchange (DEX). By participating in the dual mining program, the project can use its own tokens and KST to attract users to provide liquidity. In addition, users will get new financial instruments. Another motivation for the development of Shuangmin is to maintain a high degree of transparency. Platform users can fully understand the annual interest rate (APR) structure of dual mining pools and the utilization of mining pool transaction fees through the page of the Finance Department.

How will users benefit from dual mining?

The gradual deployment of the dual mining pool agreement is a milestone on the KSwapFinance roadmap. All existing mining pools, including single-asset and liquid mining pools, only reward KST. With the introduction of dual mining pools, the KST reward weight allocated to newly added liquid mining pools will be reduced, thereby reducing the selling pressure. As more dual mining pools are added instead of traditional mining pools, the total value locked on KSwapFinance should ensure a significant increase. From the point of view of a simple economic model, a decrease in supply (or a slow increase) combined with an increase in demand is likely to lead to an increase in prices. This situation is beneficial to existing KST holders.

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Another direct beneficiary of this new feature is the liquidity provider. They can earn two tokens (KST and partner tokens) at the same time. The APR of the dual mining pool is the sum of the expected annualized returns of the two tokens. Since the partner project will also contribute its tokens as part of the reward, the APR of the dual mining pool will predictably be more profitable than the traditional mining pool. In this case, the higher annualized rate of return means that the liquidity users of dual mining pools have higher returns.

How does the project benefit from dual mining?

Based on the following reasons, the project will gain greater exposure among OKExChain users.

First of all, KSwapFinance has a solid and active user base. It ranks among the top three DEXs on OKExChain, with more than 25,000 active users. The new project participating in the dual mining plan will receive attention because it will be promoted by KSwap Finance on social channels. More importantly, due to the basic mechanism of dual mining, its annual interest rate is very attractive. Users will be incentivized to provide liquidity, thus contributing to healthier liquidity of the project’s tokens. Users bet their LPs in the mining pool and have enough time for them to learn about the project, chat with other community members, interact with the product of the project, and finally cultivate trust in the project.

Moreover, by signing a dual mining agreement, the new project and KSwapFinance will form a long-term and firm partnership. Trust and confidence will accumulate for a long time, bringing huge possibilities to both parties.

How do users start dual mining?

Therefore, a natural question is how to participate in dual mining, which may be a question raised by ordinary users. Is there a cliff-like learning curve? Compared with other mining pools, will dual mining expose users to more substantial risks? Are the projects listed on the dual mining pool legal? All questions are fair.

First of all, becoming a dual-mining miner is very simple. If you are familiar with working capital mining, you can start. Just follow the five simple steps outlined on the “Official Documentation Page” and you are ready to go.

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Secondly, the dual mining pool itself does not introduce additional financial risks. If you understand impermanent losses and the volatility of cryptocurrency prices and set a reasonable stop loss level, there should be no other concerns.

Third, KSwapFinance always pays special attention to the selection criteria of cooperation. It selects only those projects established by mature teams as long-term partners. The cooperative request processing team behind KSwapFinance follows strict protocols to scan all requests, and if they do not meet the core requirements, negotiations are not allowed. Although the team may not disclose more details, it will assure users that all potential collaborators will be carefully reviewed to ensure that all projects listed on the dual mining pool are free from fraud.

Concluding remarks

For those who have not been exposed to KSwapFinance products before, KSwapFinance is a DEX that relies on a mature automatic market maker algorithm to freely exchange tokens for users. It is combined with another unforgeable token system and the upcoming IDO platform to provide users with various tools, the so-called decentralized financing (DeFi). KSwapFinance’s vision is to become a well-performing and transparent DEX where DeFi users can trade cryptocurrencies. At the same time, its mechanism will strive to minimize the risks in the DeFi world. In order to realize these visions, the team is constantly testing and deploying innovative features, of which dual mining is just the beginning.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/double-mining-a-defi-tool-with-double-benefits/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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