Hey guys, big news from Hive-Engine. Diesel Pool rewards contract V1 is now live. So, if you run a project and you want to support your users by providing liquidity then you can create a distribution contract. The fee is currently set to a 500 BEE burn, but we'll bring that down to a hundred or so shortly after some of the bugs are worked out.
This is an alpha launch, so please don't put massive amounts of money in it just yet.
Once you've created a contract, chosen which pair to reward, and chosen what token to reward your liquidity providers with then you can activate it.
After you activate it you can deposit funds. Now the contract will start paying out users. As an example to get us started I deposited a little BEE into the HIVE:BEE pool. Anyone providing liquidity there will be paid that BEE over the next 30 days.
You can ignore certain accounts. In this case I've ignored the hive-engine account from receiving any funds for liquidity provision.
That's V1.
V2
We're working on channeling your inflation contract for tokens directly into the distribution contract for your diesel pool.
So, let's say you operate Pal. You can have a PAL inflation stream that goes into this distribution contract. That contract automatically pays the people staking your token in the diesel pool as a reward for providing liquidity. Now you can fund liquidity providers directly from your inflation. I hope that's out this month.
BUT WAIT THERE'S MORE
Because when you first start tokens they're often close to valueless, funding liquidity with initial tokens can be extremely token expensive to get liquidity. So, with the current setup you don't HAVE to pay in your token. You can for example supply swap.btc. Then your users who stake your token will get paid some BTC for their efforts and you're not out a ton of tokens right at launch.
Future Plan
We basically borrowed a lot of ideas of how this whole thing operate from uniswap. And of course there's a uniswap token that's rewarded. We're working our way through all the contract requirements to be able to inflate BEE and pay BEE inflation to liquidity providers. Should help us get a lot more liquidity on the platform once people are paid to do it. For those of you currently providing liquidity thanks for doing it. You're helping to grow the whole Hive ecosystem.
One more update while I'm here
You'll notice that we've added USD values to diesel pools as well. Now it's easier than ever to track how to trade your tokens and maximize the value. I already see a few tokens that have some arbitrage opportunities. Best of luck out there!
Don't trade what you're not ready to lose. If you're new to trading here start with super small amounts before trying to trade on the platform. I've had a few newbies exchange hundreds of dollars of tokens for mere pennies. Please be cautious to start.