Trading Volume Mining

Overview

Alpha Finance Lab is running Trading Volume Mining for ibETH/ALPHA pool on Uniswap, distributing 3,500,000 ALPHA to liquidity providers of ibETH/ALPHA pool on Uniswap (either through Uniswap or through Alpha Homora) during the period of December 16th, 12pm UTC - January 15th, 12pm UTC.

The Trading Volume Mining program has been extended to January 22nd, 12pm UTC. 800,000 ALPHA will be distributed from Jan 15th - Jan 22nd (7 days) to liquidity providers of ibETH/ALPHA pair in a form of high trading fees.

After January 22nd, Trading Volume Mining program will still be available but with different mechanics, which we will share more details as we approach January 22nd or the end of this extension.

So what is Trading Volume Mining? How does it work? And what do users have to do to earn ALPHA from this?

Trading Volume Mining is a new way to conduct liquidity mining that we came up with instead of running a typical liquidity mining program. ALPHA rewards will be distributed out in a form of trading fees APY.

This means that the rewards in a form of trading fees APY will be reflected when you remove liquidity (not airdropped to your wallet). This is similar to when you get trading fees APY when providing liquidity to other pools on Uniswap.

To earn ALPHA in Trading Volume Mining, users need to supply liquidity to ibETH/ALPHA pool that is on Uniswap.

ibETH is an interest-bearing ETH token that users get when lending ETH on Alpha Homora. ibETH represents the lender’s share of the whole ETH lending pool in Alpha Homora.

There are 2 ways to go about to earn ALPHA.

  1. Supplying liquidity directly on Uniswap, in which you need to have both ibETH and ALPHA

  2. Supplying through Alpha Homora. Through Alpha Homora, liquidity providers just need to have either ALPHA or ETH or ibETH, as Alpha Homora will automatically and optimally swap so you have equal value of both before supplying liquidity to Uniswap.

Why do we implement Trading Volume Mining for ibETH/ALPHA pair instead of a typical liquidity mining program?

With Trading Volume Mining program, users who provide liquidity to ibETH/ALPHA either through Alpha Homora will get ALPHA, similar to how other liquidity mining program works. However, this ALPHA is distributed out as trading fees APY to liquidity providers.

This method of distributing ALPHA to liquidity providers not only helps increase liquidity to ibETH/ALPHA pair on Uniswap, but also helps

  1. Increase trading volume on Uniswap for ibETH/ALPHA pair

  2. Increase usage of Alpha Homora

  3. Increase usage of ibETH (interest-bearing ETH token that is received upon lending ETH on Alpha Homora)

What is the risk for providing liquidity to ibETH/ALPHA pool?

Similar to other liquidity providing pools, providing liquidity to ibETH/ALPHA pool bears impermanent loss risk. See more about impermanent loss here.

Scenario 1: Alpha Homora ETH lenders who already have ibETH + Also have ALPHA

This is the most optimal scenario, as liquidity providers don't have to bear (or bear lower) slippage.

  1. Select "ibETH/ALPHA (accepting ibETH, ALPHA)" pool on Alpha Homora.

2. Enter how many ibETH and ALPHA you want to supply to the pool.

3. ALPHA that you earn will be in a form of high trading fees that you earn from providing liquidity to this ibETH/ALPHA pool. This means that the rewards in a form of trading fees APY will be reflected when you remove liquidity (not airdropped to your wallet). This is similar to when you get trading fees APY when providing liquidity to other pools on Uniswap.

That's it! Alpha Homora will do everything else for you. Now when you want to remove liquidity from the pool, just follow the following steps.

1. Click Remove Liquidity under "Your Liquidity" section.

2. Select how you want to remove liquidity. "Minimize Trading" option will return you both ibETH and ALPHA. "Convert to ALPHA" option will return everything back to you in ALPHA (this also includes automatically swapping ibETH to ALPHA for you, so there will be slippage).

If you want to convert ALPHA to ETH, you can convert it on 'Swap' page.

Scenario 2: For those who have ALPHA and ETH

  1. Select "ibETH/ALPHA (accepting ETH, ALPHA)" pool on Alpha Homora.

2. Enter how many ETH and ALPHA you want to supply to the pool. Alpha Homora will deposit the ETH to Alpha Homora and return you the ibETH tokens back. Then, it will supply both ALPHA and ibETH to the pool for you.

Note: ibETH is an interest-bearing ETH token received upon depositing ETH to Alpha Homora. This ibETH token represents your share of the total pool of ETH.

3. ALPHA that you earn will be in a form of high trading fees that you earn from providing liquidity to this ibETH/ALPHA pool. This means that the rewards in a form of trading fees APY will be reflected when you remove liquidity (not airdropped to your wallet). This is similar to when you get trading fees APY when providing liquidity to other pools on Uniswap.

That's it! Alpha Homora will do everything else for you. Now when you want to remove liquidity from the pool, just follow the following steps.

1. Click Remove Liquidity under "Your Liquidity" section.

2. Select how you want to remove liquidity. "Minimize Trading" option will return you both ibETH and ALPHA. "Convert to ALPHA" option will return everything back to you in ALPHA (this also includes automatically swapping ibETH to ALPHA for you, so there will be slippage).

If you want to convert ALPHA to ETH, you can convert it on 'Swap' page.

Scenario 3: Alpha Homora ETH lenders who already have ibETH

  1. Select "ibETH/ALPHA pool (accepting ibETH, ALPHA)" on Alpha Homora.

2. Enter how many ibETH you want to supply to the pool. Since ALPHA is needed to provide liquidity to ibETH/ALPHA pool in addition to ibETH, Alpha Homora will swap a portion of ibETH you supply to ALPHA. This means there will be slippage, as swapping from ibETH to ALPHA is required.

3. ALPHA that you earn will be in a form of high trading fees that you earn from providing liquidity to this ibETH/ALPHA pool. This means that the rewards in a form of trading fees APY will be reflected when you remove liquidity (not airdropped to your wallet). This is similar to when you get trading fees APY when providing liquidity to other pools on Uniswap.

That's it! Alpha Homora will do everything else for you. Now when you want to remove liquidity from the pool, just follow the following steps.

1. Click Remove Liquidity under "Your Liquidity" section.

2. Select how you want to remove liquidity. "Minimize Trading" option will return you both ibETH and ALPHA. "Convert to ALPHA" option will return everything back to you in ALPHA (this also includes automatically swapping ibETH to ALPHA for you, so there will be slippage).

If you want to convert ALPHA to ETH, you can convert it on 'Swap' page.

Scenario 4: For those who have ALPHA only

  1. Select any of the pools under ALPHA Pools.

2. Enter how many ALPHA you want to supply to the pool. Alpha Homora will swap some part of ALPHA you supply to ibETH, so you will have two assets to supply to the Uniswap ibETH/ALPHA pool. This means there will be slippage, as swapping from ALPHA to ibETH is required.

3. ALPHA that you earn will be in a form of high trading fees that you earn from providing liquidity to this ibETH/ALPHA pool. This means that the rewards in a form of trading fees APY will be reflected when you remove liquidity (not airdropped to your wallet). This is similar to when you get trading fees APY when providing liquidity to other pools on Uniswap.

That's it! Alpha Homora will do everything else for you. Now when you want to remove liquidity from the pool, just follow the following steps.

1. Click Remove Liquidity under "Your Liquidity" section.

2. Select how you want to remove liquidity. "Minimize Trading" option will return you both ibETH and ALPHA. "Convert to ALPHA" option will return everything back to you in ALPHA (this also includes automatically swapping ibETH to ALPHA for you, so there will be slippage).

If you want to convert ALPHA to ETH, you can convert it on 'Swap' page.

Scenario 5: For those who have ETH only

  1. Select "ibETH/ALPHA (accepting ETH, ALPHA)" pool on Alpha Homora.

2. Enter how many ETH you want to supply to the pool. Alpha Homora will deposit the ETH to Alpha Homora and return you the ibETH tokens back. A portion of ibETH will then be swapped to ALPHA, so you will have two assets to supply to the Uniswap ibETH/ALPHA pool. This means there will be slippage, as swapping from ibETH to ALPHA is required.

Note: ibETH is an interest-bearing ETH token received upon depositing ETH to Alpha Homora. This ibETH token represents your share of the total pool of ETH.

3. ALPHA that you earn will be in a form of high trading fees that you earn from providing liquidity to this ibETH/ALPHA pool. This means that the rewards in a form of trading fees APY will be reflected when you remove liquidity (not airdropped to your wallet). This is similar to when you get trading fees APY when providing liquidity to other pools on Uniswap.

That's it! Alpha Homora will do everything else for you. Now when you want to remove liquidity from the pool, just follow the following steps.

1. Click Remove Liquidity under "Your Liquidity" section.

2. Select how you want to remove liquidity. "Minimize Trading" option will return you both ibETH and ALPHA. "Convert to ALPHA" option will return everything back to you in ALPHA (this also includes automatically swapping ibETH to ALPHA for you, so there will be slippage).

If you want to convert ALPHA to ETH, you can convert it on 'Swap' page.

What does it mean to have both Liquidity Mining Part 2A and Part 2B: Trading Volume Mining running at the same time?

Having both Liquidity Mining Part 2A and Part 2B: Trading Volume Mining be running at the same time means that the weekly ALPHA rewards that you earn from Part 2A from opening leveraged positions on Alpha Homora can be used to supply to ibETH/ALPHA or ETH/ALPHA pool on Alpha Homora and earn even more ALPHA from Part 2B: Trading Volume Mining!