It is with great excitement that we are officially opening pools to liquidity providers in Hyphen. If you’re interested in earning stable high yields and contributing to the best bridge on the market, this is for you!
During the managed liquidity period, we’ve opened our liquidity pools to users, so we can begin supplementing Biconomy provided pool liquidity with decentralized Liquidity Providers (LPs).
In addition, we’re also using this opportunity to release our new dynamic pricing model, in order to optimize the relationship between total liquidity and supplied liquidity, as well as the relationship between total pool volume and supplied liquidity (utilization rate).
There are two main components to the managed liquidity period each with their own unique benefits, that together create the foundation for Hyphen 2.0.
Our new dynamic fee structure ensures liquidity pools are balanced without additional oversight, while supporting reduced fees for bridge users. This is accomplished by incentivizing transfers from source chains with higher liquidity to those with less, resulting in a fee determined by the available liquidity in both the source and destination chain.
In addition to earning fees in exchange for providing liquidity, users will also be able to collect $BICO rewards by staking their NFT positions within the Farms tab of our new user interface. At the time of this post, the updated interface is available for all hyphen users to start earning fees and collecting $BICO by contributing up to $10 million in total liquidity from all providers.
We’ve created this guide to help you become a liquidity provider in no time, after all, spots are limited!
Follow this simple guide for adding and managing liquidity as a provider in Hyphen 2.0. Thanks to our new interface it’s incredibly easy to do so, try it out for yourself!
How to Add Your First Liquidity Position in Hyphen
Step 1: navigate to the Hyphen interface and connect your wallet