Liquidity Mining Pools: Maximize Your GOMINING Token Yield

We at GoMining are constantly working on expanding GoMining as an ecosystem, presenting new features and opportunities built around Bitcoin mining.

At the center of all operations is GoMining’s utility token; the GOMINING token that is backed by a deflationary model and offers up to 20% discount on maintenance fees.

Today, we’re introducing yet another exciting avenue that users can explore: Liquidity Mining.

What is Liquidity Mining?

A liquidity mining pool is a fund where participants contribute funds to ensure there’s enough liquidity for trading on decentralized exchanges (DEXes).

In the world of decentralized finance (DeFi), liquidity is essential to every company. It keeps trades flowing and enhances market efficiency, ensuring that users can buy and sell tokens without significant price disruptions.

Whereas traditional finance relies on intermediaries like banks to provide liquidity, decentralized finance (DeFi) relies on a DeFi liquidity mining pool to ensure everything carries on ticking smoothly. By eliminating the need for traditional intermediaries, DeFi platforms can operate more efficiently and cost-effectively.

The concept of liquidity pool mining is fundamental to the operation of DEXes. In liquidity mining, participants provide their assets to the liquidity pool and, in return, receive rewards, usually in the form of additional tokens.

These rewards incentivize participants to continue contributing to the liquidity pool, thereby ensuring the platform remains liquid and functional.

GoMining is now introducing liquidity positions as an accessible option, providing a seamless experience with the chance to receive potentially lucrative returns on tokens. This approach enhances user engagement and use of the GOMINING token.

As token demand grows, the better and easier it is for the platform to offer more ways users can earn sustainably. Liquidity mining provides an excellent solution.

It’s also important to add that this function is only available from the desktop version of the GoMining app.

Find out how to add a liquidity position below:

Join Liquidity Pool Mining Early and Earn up to 8,800% APR

Liquidity mining involves providing liquidity to decentralized exchanges in return for rewards. PancakeSwap, one of the most popular DEXes on BNB, has been integrated into our platform through its liquidity pool function, allowing users to access their own liquidity positions.

While GoMining is not a DEX itself, PancakeSwap provides a secure and user-friendly platform that users can trust, which has now been built into GoMining's desktop app. These liquidity mining pools provide dynamic locking options that make it possible for users to start earning from their liquidity positions.

Users can participate by simply depositing their assets into the pool.

For every trade carried out using their contributed funds in the liquidity mining pool, users earn fees. The more transactions that take place, the more fees are earned. For now, only the GOMINING/USDT token pair is available, however, users should keep a lookout for updates of any new additions. 

APRs can be much more profitable compared to a veGOMINING lock. Depending on your strategy you can earn anywhere between 9% with a wider price range to 160% APR or more if you choose a narrow price range.

These figures are hypothetical and can vary—returns could be smaller or even exceed 160%, depending on market conditions and pool dynamics. But remember, the narrower your range, the more frequently your position may be prioritized for trades, potentially increasing your earnings.

GoMining’s liquidity positions offer users the opportunity to access an additional source of profits with APRs reaching up to 8,800%.*

*Calculated based on a daily volume of 200,000 USDT, distributed among a total of 10,000 liquidity positions.

Liquidity Pool Mining vs. Locking

If you’re thinking about pursuing liquidity pool mining or sticking with locking tokens, it all comes down to your goals and your approach. While liquidity pool mining can offer significant rewards, it’s important to familiarize yourself with the concept and the risks involved, including the potential for impermanent loss. 

Impermanent loss occurs when the value of your assets decreases due to market changes, such as price fluctuations or reduced demand. This means that if the market value of the tokens you provide as liquidity drops significantly, you may end up with less value than what you initially invested. Understanding this risk is crucial, as it can impact your overall returns.

veGOMINING gives you the opportunity to lock your GOMINING tokens for up to 4 years, which can be a smart move if you’re looking for stability in your investment. With up to 22% APY, locking your tokens not only offers a reliable way to earn rewards but also helps protect you from the ups and downs of the market. Plus, by locking your tokens, you’re playing a vital role in strengthening the GoMining ecosystem, which can boost the overall value of your investment over time.

In contrast, crypto liquidity pools, although presenting potentially higher risks, on the other hand, offer a potentially more lucrative alternative to locking tokens, bringing higher returns depending on market conditions and the chosen strategy. Moreover, by participating early, users stand to claim their part of these exceptionally high returns with special leaderboard bonuses paid weekly for maintaining the liquidity balance.

Boost Your Liquidity Position With Bonus Rewards

Aside from the above mentioned fees, by providing and maintaining your liquidity positions, you’ll earn points that help you climb higher on the liquidity pool Leaderboard. Points are based on the amount of fees collected, with a multiplier for maintaining a balanced liquidity position.

IMPORTANT: If you're providing liquidity and want to earn Leaderboard points, make sure your wallet is linked to your GoMining account. Otherwise, it won't accrue leaderboard points.

The Leaderboard is organized into Cycles, each lasting one week. The default multiplier starts off at 1 and increases by 1/52 each week, as long as the balance is not withdrawn or reduced. For example, after the first week, the multiplier is 1 + 1/52, then 1 + 2/52 the following week, continuing until it reaches a maximum of 2.

Approximately 100,000 GOMINING tokens will be distributed monthly, based on 10% of weekly VE voting awards, and allocated to the liquidity pool leaderboard. Optimizing your liquidity position will further improve your ranking and increase your rewards.

Bonus rewards are paid out every Tuesday; however, any reduction will reset the multiplier to 1. You are able to claim your fees at any time manually.

The first cycle for Fees and LP score calculation started on November 15, and will accumulate points until Tuesday, November 19, 12 UTC, meaning the current cycle is shorter and can therefore can be profitable in terms of additional rewards.

GoMining will also be giving away an exclusive Super Power GoMiner Avatar to one lucky user, offering them a unique and exciting digital collectible.

Take a look at our explainer on how to effectively manage a liquidity position.

Maximize Liquidity Mining With Multiple Positions 

A further option is to supercharge earning strategies by creating multiple liquidity positions. GoMining makes this very simple to do and anyone can start with a few clicks. Configure your own strategy, price ranges, and fee structure according to your own goals.

Whether you aim for short-term gains or long-term growth, this customizable approach means you can maximize the potential of your liquidity positions. The ability to create multiple positions, each adopting different strategies, provides yet more ways you can diversify and maximize your profits. By leveraging multiple liquidity positions, you’ll be able to spread risk across various strategies and market conditions, enhancing overall profitability and stability.

Check out how you can maximize your rewards with liquidity pool mining here.

Start your journey toward high-yield returns with GoMining today!

Disclaimer: GoMining itself does not operate DEX trading, using PancakeSwap’s proven technology to provide a user-friendly interface and leaderboard feature.

If you have any questions or need further assistance, feel free to reach out to our support team at [email protected].