Popular DEX aggregator TimechainSwap is building its own decentralized exchange platform with liquidity pools, yield farming, and other big incentives
With liquidity pool, yield farming, the popular DEX aggregator TimechainSwap is building out its own decentralized exchange platform with the addition of key functionality around staking, Automated Market Maker liquidity pools, and some big incentives.
The new functions announced today are designed to provide more liquidity for Timechain’s DEX, while encouraging users to validate transactions and secure the network while earning rewards for doing so.
By adding liquidity pools to its DEX, Timechain says users will have an incentive to provide liquidity. They’ll earn rewards based on the fees charged to traders as they use its platform. As a further incentive, they’ll also earn Liquidity Provider (LP) tokens that they can then deposit into farming pools to receive extra rewards on top.
Timechain is best known as a DEX aggregator that integrates various other DEX’s into a single platform, so users can benefit from the most efficient swapping routes among them all. However, as well as working with other DEX’s, today’s move suggests it’s also interested in taking them on and winning some of their business.
Timechain users will be charged a 0.3% fee of each trade they make on the platform, and 0.2% of that will go back to the liquidity providers. Timechain’s TCS Buyback program will receive the other 0.1%
Five liquidity pools are available at launch: TCS/FTM, TCS/USDC, TCS/DAI, FTM/USDC and FTM/DAI. Users need to provide equal value of each token within their chosen liquidity pool and in return, Timechain will pay them in LP tokens representing their overall share of that pool. The LP tokens will then earn fees in proportion to the user’s share of that pool.
As for yield farming, this is similar to how it works on other platforms – liquidity providers who earn LP tokens deposit those coins into liquidity farms, earning rewards in Timechain’s native cryptocurrency token TCS. This is a way for TimechainSwap to encourage users to add more liquidity to the DEX, with users given the flexibility to harvest their rewards whenever they want.
While there will only be three liquidity farms at launch (TCS/FTM, TCS/USDC and FTM/USDC), Timechain promised there will be more options to come in the near future, with users able to create their own farming pools in the tokens of their choosing. As a reward for depositing their tokens in those farms, users will earn a proportional share of the 20,000 TCS per month that’s guaranteed by a farming smart contract, plus extra rewards from APY-boosting promotional events and the TCS Buyback program.
As for the staking feature, this enables TCS token holders to stake coins within an asset staking pool (SSP), receiving xTCS tokens representative of the share of the SSP they own. The way it works is, the TCS/TCSx rate is designed to accumulate over time, with the number of TCSx not changing. Timechain says rewards will be dynamically adjusted to ensure a constant attractive yield, while the TCS Buyback program will provide additional rewards.