Acta Finance liquidity provisions and farming contracts summary
Dear Community, Last week, we offered you a deep dive into the first functionality that we will be releasing at our launch, the Address Milestones and Referral System. This week, we are diving into the realm of liquidity provisions and farming pool contracts, which will be the following functionality of our platform. Release is set three weeks after our launch.
In this article, we will elaborate on the ecosystem's liquidity provisions and farming contracts. We’re excited to explain in further detail how these features work and how together, create a revolutionary DeFi ecosystem.
🟡Liquidity in the Acta Finance Ecosystem
Liquidity is the lifeblood of any financial market. Without liquidity, traders and investors would be unable to buy or sell their assets quickly, which would cause prices to spike and hinder growth as a result of a lack of supply and demand.
As a user of the Acta Finance ecosystem, you can generate passive revenue by providing liquidity to our decentralized exchange, ActaFi Swap. This is called liquidity mining, or yield farming.
🟡ActaFi Swap Liquidity Provider
When someone swaps a token using ActaFi Swap, they are charged a 0.3% swap fee. The swap fee is allocated to the liquidity pool’s liquidity providers, based on their share of the liquidity pool. A liquidity pool contains two assets and provides liquidity to a liquidity pool, the user deposits an equal valuation of both assets.
For example, if you provided 10% of the liquidity pool, then you receive 10% of the swap fees of that liquidity pair. This is a win-win situation. The token swapper wins because he can swap quickly and efficiently because of your liquidity. In return, you win because you receive a portion of the swap fee. The more swaps that occur on ActaFi Swap that utilize the liquidity pool you contributed to, and the more liquidity you provide, the higher your returns.
🟡Farming Smart Contracts (Liquidity points/LP Staking)
For each trading pair on ActaFi Swap (e.g. USDT/ACTA), Acta Finance establishes a liquidity pool. To incentivize liquidity providers to perform yield farming, the ActaFi ecosystem will set up Farming smart contracts.
A farming smart contract has a monthly, fixed, reward for a dedicated liquidity pool. Therefore, liquidity farmers can see farming smart contracts as a bonus. Not only does the liquidity provider receive his share of the trading fees, but also his share of the monthly (fixed) rewards as long as he stakes his Liquidity Points.
🟡How To Enter Farming Smart Contracts
When you provide liquidity to a liquidity pool, you receive Liquidity Points (LPs). You can deposit your Liquidity Points to the farming smart contract to not only receive your share of the liquidity pair trading fees, but also receive a share of the fixed rewards allocated to that liquidity pool, hence the farming smart contract.
🟡Referral Program and Address Milestones
The Referral Program and Address Milestones are a centerpiece within the ActaFi Ecosystem. Our Acta Finance DeFi blog series started with a write-up about this topic last week. As with every passive earning opportunity within the ActaFi Ecosystem, there is an address milestone and a commission that goes to the referrer aka affiliate within three milestone levels. The commissions to referrers on address milestones are:
🏆10% Tier 1
🏆5% Tier 2
🏆3% Tier 3
With farming, there is no difference. Users that engage with a minimum of 5000$ in farming smart contracts (quarterly) complete address milestones. Each time you reach an address milestone, it provides a 1-time bonus. The bonus is progressive (growing) as you work yourself to the top level.
If you were referred, your referrer receives a commission when you reach your milestones and if you have your Referral Program activated yourself, you receive a 10% kickback of that commission!
🟡Vote For Farming Smart Contracts
The ActaFi DAO Program allows the Ministers and Ambassadors to vote quarterly on liquidity pools on the ActaFi Swap. To become a DAO title holder, users need to stake the minimum needed amount of tokens for 6 months in order to claim their DAO title. 100,000 ACTA is needed for an Ambassador title, while 50,000 ACTA are needed to be staked for the Minister title.
The DAO Program gives voting rights, such as smart contract audits, farming smart contracts, and projects on the ActaFi Launchpad to the DAO title holders, as well as passive earning opportunities through the redistribution of the platform fees!
🟡ActaFi Launchpad — Liquidity Guaranteed
Newly listed projects, on a swap protocol, often depend on the community providing the liquidity, without any incentive. Therefore, many liquidity pools on swap protocols contain a very low amount of liquidity and can be a trap for the people that provide liquidity with the impermanent loss.
Projects that launch through the ActaFi Launchpad have 20% of the raised funds locked in a liquidity pool for 12 months. Additionally, the project will be required to provide farming smart contract rewards, to incentivize the community to provide liquidity to the token’s liquidity pools.
Stay tuned for next week’s DeFi deep-dive when we elaborate more on peer-to-peer lending and our coming product.
🟡About Acta Finance
Acta Finance is a cross-chain DeFi platform governed by smart contracts that innovates the Avalanche and Cardano ecosystem with the ActaFi Swap and a referral system. Acta Finance introduces a Referral Program, Address Milestone Rewards, and a DAO Program to maximize platform growth and user activity based rewards. By offering derivatives in a decentralized way, through ActaFi Swap, Acta Finance aims to counter the manipulated liquidation events on centralized entities by using a decentralized price feed and a cross-chain liquidity aggregation.
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