Rubic Liquidity Providing — How Does it Work?
Rubic’s team is thrilled to announce our Liquidity Program, which starts very soon. RBC holders can get rewards with up to 27% APR* in USDC during the Program. Let’s take a closer look at all the conditions and benefits of Rubic’s Liquidity Providing Program.
Why is Rubic’s LP Program Superior?
LP Programs are one of the hottest topics for anyone involved in the crypto space. Therefore, the search for the best liquidity pools in recent times has some strong motivations. Also, there are only a few LP programs with rewards in stablecoins:
- Anchor Protocol — approximate APY is 20%
- Coinbase — USDC deposits have an APY of 0.15%
- Nexo — has an APY of 12% for USDC
- Rubic — approximate APR is 27%*
What is Your Benefit?
Rubic charges a 0.3% fee for Multi-Chain transactions that will be distributed among our Liquidity Providing participants.
Providing Liquidity with USDC, you can get up to 27% APR as daily rewards in USDC. The APR could be changed depending on the volume of Rubic’s Multi-Chain Protocol as well as that of our LP Program.
Since rewards are distributed through a stablecoin like USDC, it has no volatility. You can check your APR daily, and estimate your profit.
What is a Liquidity Provider?
A liquidity provider for Rubic is someone who provides deposits of USDC to the Rubic Protocol, to improve the liquidity of Rubic’s Multi-Chain ecosystem; as well as to increase the volume of our pools. In return, providers will be rewarded with fees generated by Multi-Chain trades, which can be described as a form of passive income.
What is a Liquidity Pool?
The liquidity is deposited into a liquidity pool — a crowdsourced pool of USDC tokens locked in a smart contract that is used to facilitate trades between the assets and blockchains on Rubic’s Protocol.
The liquidity provided by you should be in USDC, which will be locked in a smart contract and used to provide liquidity. Traders will use this liquidity pool to swap their assets. By providing liquidity for traders, you will earn rewards in USDC on your assets from trading fees.
Besides, liquidity providers will have to lock a certain amount of BRBC as an obligatory deposit in a special smart contract. The ratio is 1 BRBC : 1 USDC.
Whitelist
Users who have participated in the First Round of BRBC Staking will have a guaranteed allocation of up to 800 USDC tokens in the liquidity pool. The minimum deposit amount for them is 500 USDC. This guaranteed allocation will be available for them for 24h from the start of the Liquidity Program. We will publish the list of whitelisted addresses before the start of Round 1.
Also, we will raffle more whitelist allocations due to the contest on our Twitter before the start of Round 1. Subscribe and get ready to take part in our contest!
Why Do We Use the Mechanics of Rounds?
It’s important to note that the coming LP Program won’t be an ad hoc solution; there will be more Rounds of liquidity providing to come. Each new Round will be launched as the trading volume of Multi-Chain increases, keeping a high APR for those who took part in the previous Rounds.
New Rounds can be launched in parallel to the ongoing Rounds of the LP Program. Upcoming Rounds will also be limited in volume and duration.
We use the mechanics of rounds because APR depends on market sentiment and trading volume, so we try to create the most favorable conditions for round participants and keep the APR high.
What’s Next?
Soon, we will publish all of the specific details for Round 1 of our Liquidity Providing Program. Also, we’ll prepare precise instructions on how to provide your liquidity, and will share the analytics on our LP Program.
You are now familiar with how Liquidity Providers work and how useful it is, for both the Rubic Protocol as well as users who want to earn rewards by providing their crypto assets to liquidity pools!
* This APR is a preliminary calculation based on previous months
About Rubic
https://rubic.exchange and https://app.rubic.exchange
Rubic is the Multi-Chain Swap Protocol which allows you to swap any of our 15,000+ assets, on and between 11 blockchains, in one click. Rubic’s Multi-Chain Routing Protocol includes On-Chain & Multi-Chain swaps for Ethereum, BSC, Polygon, Avalanche, Moonriver, Fantom, Harmony, Solana, Arbitrum, Aurora, and NEAR; with seamless fiat on-ramps and more!
Rubic’s aim is to deliver a complete “One-Stop, Full-Circle” decentralized trading platform. Rubic.exchange is the place where users can complete Multi-Chain swaps using an intuitive solution, to get the best rates from all leading trading protocols.
