Development and construction of DFI ecological NFT mobile mining system

DeFi The boom has swept all major blockchain media , Become the hottest trend and investment target . It not only brings a new income model , And completely redefined the traditional concept of mining . And from 2021 From the beginning to the present ,DeFi The heat has not completely subsided , Has already been NFT Occupy the top spot in blockchain popularity .DeFi ecology NFT For the development of mobile mining system, ask Apeng :132.. Wei 4z77 Heft z558,NFT Liquidity mining dapp Develop and build

NFT Suddenly hot , It's no accident . Compared to difficult to understand DeFi,NFT Nature is easier to understand and accept .NFT Unique scarcity , Is its core value ; But if not DeFi Concept inspiration ,NFT such “ rare ” The items , Difficult to be priced , Cannot be batch traded , It is very likely to lack private domain traffic , Or it can only become a toy for a few people ; On the other hand ,NFT The rapid development of has benefited from DeFi,NFT Also let people see DeFi The possibility of more ductility .

NFT There are many ways to play , One of them is liquidity mining , Liquidity mining （Liquidity Mining）, Also known as income farming （Yield Farming）, It is a new way to provide liquidity to decentralized transactions by using cryptocurrency . that , What is liquidity mining , What factors will affect the liquidity mining income , What are the types of liquidity mining agreements ？ And how to participate in NFT Mobile mining ？

A brief history of mobile mining

Mobile mining has a longer history than we think .2017 year 10 month ,DeFi Before appearance , One of the largest decentralized exchanges IDEX Liquidity mining is introduced for the first time . Two years later, , In derivatives liquidity agreements Synthetix And decentralization Oracle agreement Chainlink Under the cooperation of , Liquidity mining has undergone a redefinition . And in the 2020 year ,Uniswap and Compound When the decentralized trading agreement finally pushes the liquidity mining down in front of the public . Mobile mining aggregates dozens of different DeFi agreement , It is considered to be a better solution of distribution pass under the decentralized financial model .

Liquidity to DeFi Brought subversion , Make the mortgage assets entrusted by the market grow explosively , Its rapid growth is not inferior to 2017 First token issue in .

Before understanding mobility mining , Need to know what market liquidity is and how it works .

What is liquidity ？

Liquidity refers to the extent to which an asset is quickly bought or sold in the market at a stable price , Its price finally reflects the intrinsic value of the asset . Liquidity determines how quickly an asset can be bought or sold at the best price , And the loss is minimal . The more liquid the assets are , Market operation is more effective .

In the digital money market , The liquidity of various assets and financial derivatives is very important , Decentralized liquidity innovation reduces transaction costs , It brings more and more choices and ways of trading , Attracting a steady stream of new users , Giving birth to more and more new applications . New applications bring high efficiency 、 High yield , It has attracted more and more investors and more and more highly liquid assets .

Liquidity has three main attributes .

（1） Speed ： Liquidity determines the speed of order execution . If liquidity is too low , There will be a delay ： A limited order may take hours 、 several days , Even weeks to execute . For highly liquid transactions , The execution of the order takes only a few seconds , Even a few milliseconds .

This requires us to distinguish between platform liquidity and transaction liquidity .Binance It is one of the most liquid crypto exchanges , but Binance There are also illiquid trading pairs , Such as DENT/USDT or IDEX/USDT. let me put it another way , Even the largest platforms have low liquidity trading pairs .

（2） Bid ask spread ： The price difference between a buy order and a sell order （spread） The higher the , It means that the lower the liquidity . A low spread means that you can buy or sell an asset with minimal loss in a short time . In the case of high liquidity , The spread is usually no more than one tenth of the market value of the asset .

（3） Slide it ： Slide it （slippage） It refers to low liquidity transaction pairs, which can not guarantee the rapid execution of orders , There is no guarantee that the order will not be executed . A slip point means , Even if you place an order （ for example , Stop loss limit order ）, There is no guarantee that when the exchange trading activity is frequent , That is, when the price fluctuates sharply , The order will be executed . The paradox is ： The order will not be executed for a long time , But then there was a sudden influx of traders , As a result, supply and demand cannot be met .

To make a long story short , The more liquid , The lower the price difference , The faster the order is executed , The less slippery it is .

What is liquidity mining ？

Liquidity mining is a way of market organization , Is to use cryptocurrency to decentralize transactions （decentralized exchanges,DEX） The act of providing liquidity . The main objective of the transaction is to bring liquidity ,DEX Reward users who are willing to bring capital to their platform , Exchanges and token issuers also reward communities that provide liquidity .

majority DEX Using automated market makers (automatic market maker,AMM), A smart contract that regulates transactions , Instead of the ledger , To achieve decentralization . Smart contracts are decentralized , Users can effectively 、 Easily trade with other users .

The platform introduces token swap （token swapping） To trade . In the case of token exchange , One token in the liquidity pool can be exchanged for another . Every time a user makes a transaction , Will pay a certain fee . for example ,Uniswap The transaction cost is 0.3%.

AMM Will charge these fees , Give it as a reward to each liquidity provider （liquidity provider,LP）. therefore ,DEX It actually provides a symbiotic ecosystem , Users can help each other .

Miners will be based on the Commission share paid by traders or investors 、 Price difference and order duration to obtain revenue . All participants will their tokens “ Put on the ” Into a common pool , This pool is known as the liquidity pool （Liquidity Pool）.

One thing to note is that , Each liquidity pool consists of two tokens , Represents a pair of transactions . majority DEX need 1:1 Proportion of liquidity pool . Essentially , This means that the liquidity pool must consist of two equal numbers of tokens . This requires coercion LP Contribute to the two assets required by the liquidity pool to achieve .