06 May 2021 · 2 min read

Absurdly High Rewards for LPs from First DEX to Refund ETH Gas Fees

The text below is an advertorial article that was not written by Cryptonews.com journalists.

Emiswap

EmiSwap AMM, a new strong player on the DEX scene, intends to pull liquidity from major protocols by providing 100% Ethereum gas refunds and allocating NFTs, some of the most rewarding market conditions for liquidity providers.

The exchange went live on March 31 and is about to cross 250,000 USD TVL (or liquidity). It already attracted more than a whopping 1.3 million USD during the pre-seed and seed round sales of their native governance ESW token to early investors. The price of one ESW token increased by 110%, from 0.11 to 0.23 USD. EmiSwap is currently running a private investment round at 0.23 USD for around a month, after which the ESW will be available on launchpads for 0.37 USD, and they will begin listing on other markets.

The EmiDAO alliance's first project is EmiSwap, and its partners – Alpha Sigma Capital investment fund, DigiFinex, Bitmart, Emirex, and HollaEx centralized exchanges, IDCM, MahaDAO and Everest KYC provider – are proactive in operating and marketing the new DEX.

What are the most enticing features of EmiSwap that are likely to drive mainstream acceptance, hype, and liquidity attraction?

Early liquidity providers will reap substantial benefits.

The EmiSwap management team works on providing the best business conditions to draw liquidity providers from competing protocols. EmiSwap usually pays 0.25 % of all transactions on the exchange to LPs, but bonuses for the first 100 days after launch will multiply. So what does EmiSwap has to grant:

  1. 100% Ethereum gas fee refunds for any operation (creating a pool, swapping, or providing liquidity) in ESW governance tokens.
  2. Every day, 30,000 ESW is allocated to LPs in proportion to each million DAI trading rate (which increases the reward for providing liquidity by two).
  3. Furthermore, over 40,000 ESW is distributed to LPs regularly.
  4. Since ESW is a governance token, its holders will earn 0.05 % of regular trading volume and vote on product innovations.
  5. LPs can receive limited-edition NFT cards through crossing TVL milestones.

We simulated a potential scenario to see how competitive EmiSwap is in generating rewards for liquidity providers.

Calculations: One possible outcome and a 107 % APY

  • You supply 100,000 USD in liquidity for the ETH/DAI token pair.
  • You pay 100 USDT for gas and get 435 ESW in exchange.
  • EmiSwap's total liquidity is 20,000,000 DAI, which means your stake is 0.5 %.
  • Since the daily trade volume is 3,000,000 DAI, 7,500 DAI are spread across LPs daily. Every day, you collect 37,5 DAI.
  • Furthermore, 90,000 ESW (30,000 ESW for every million trading volume) is distributed proportionally to LPs. Every day, you get 450 ESW.
  • Besides that, for every 1,000 blocks, liquidity providers get 6,150 ESW. Since there are 6,800 blocks every day, 41,820 ESW are spread among LPs. Your daily reward is 201 ESW.
  • In this scenario, your daily bonus is 37.5 DAI + 651 ESW. You also earn 0.05 % a day from your ESW reserves.
  • In this circumstance, your monthly earnings would be 1125 DAI + 19,530 ESW.

According to EmiSwap guesstimates, once TVL on EmiSwap hits 20 million DAI, the APY for providing liquidity on EmiSwap is 107 %, and that's not including the 0.05 % bonus from ESW tokens.

Liquidity Providers and NFT Magic Cards

EmiSwap is not just the first DEX to compensate Ethereum gas fees. It also provides limited-edition NFT cards that raise consumer earnings when using the exchange or traded on marketplaces.

EmiSwap will issue a limited set of 1001 cards to consumers who provide liquidity and exceed the 100,000 USD TVL threshold. The more liquidity you add as you approach the milestone, the more valuable the card becomes. There will be 1 Mythic Card, 10 Legendary Cards, 40 Epic Cards, 150 Rare Cards, 300 Uncommon Cards, and 500 Ordinary Cards.

Now is the opportunity to make the cut and win NFT Magic Cards!