1. What is Liquidity Mining?

Liquidity mining is the term used in the DeFi circle, where users supply liquidity to dApps like Shield, in return for rewards which vary depending on the platform. In the context of Shield, you will receive SLD tokens, the native token on which SLD runs. The amount of SLD you receive depends on the method of deposit (Public pool or Private Pool). The SLD you receive can be swapped for stablecoins from the funding fee pool.

2. How much SLD can I earn?

Initially, the entire Public pool will receive about 57,600 SLD per day, shared by the Liquidity Providers on a Prorata basis. If you’ve deposited liquidity in the private pool, you will receive SLD based on the following formula:
Transaction Fee of The order*10*0.05 SLD.

3. What is the locked period?

To prevent large fluctuations in the liquidity of the public pool, deposits to the public pool will lock for 14 days, and each new deposit will re-calculate the entire deposit of that wallet address in the public pool with the date of deposit.

4. Is it safe to participate in liquidity mining through either of the two pools?

Liquidity Mining does come with it’s fair share of risk. In the context of Shield’s Dual liquidity pool model, it is safer to deposit funds in the public pool when compared to the private pool. However, it is highly recommended that Liquidity Providers read up on the topic, and fully understand, and are comfortable with the associated risks before providing liquidity.

5. What assets can I use to participate?

Regardless of which pool you’re depositing liquidity in, you can use stablecoins such as USDT, USDC, and DAI to participate in Shield’s Liquidity mining program.
Last modified 5mo ago