Trade and provide liquidity and Perennial to become eligible for a potential airdrop!
Perennial
Progress mission: 0 of 2
Rewards
Rewards
TBA
Past rewards
$1,700 $9,600
Details
Minimal cost
~$20
Minimum deposit
$500
Time required
10 min.
Category
Mainnet
Rating
6/10
Risk
Medium
Perennial has secured $12 million from major investors like Polychain Capital and Coinbase Ventures. Its smaller number of users is good for early adopters because there's less competition.
There isn't an official token or airdrop right now. But, since the protocol needs liquidity, they might offer token incentives in the future. However, remember, joining DeFi projects usually involves financial risks and commitments.
Participation costs in Perennial should be considered from the below perspectives:
-
Volume - you will need around $500 to perform transactions, in order to generate the needed volume. You won’t lose the $500, this is just the amount you need to use for transactions.
-
Transaction fees - achieving the needed volume will require you to perform 20 transactions, all of -them requiring transaction fees, which you need to spend.
-
Liquidity - for the liquidity mission, you will need to lock the funds for at least 3 months, they are withdrawable at all times though.
Pros & Cons
Why is it worth it?
Strong Backing
The project has the support of Tier 1 funds and has raised a significant sum for the DeFi sector.
Small Competition
Dune Analytics shows only 6,000 LPs and 1,000 traders, suggesting less competition.
Requiring Liquidity
The need for liquidity hints at a probable system to encourage initial liquidity provision.
Risks to consider
Uncertain Token Plans
No official confirmation yet of a token or airdrop.
Required Funds
Participation requires you to use around $500 in order to generate volume, which might be a lot for some.
How to participate?
Every opportunity has its own rules. Following these closely can significantly increase your chances of qualifying for rewards. Here’s a list of recommendations from our team to help maximize your chances of benefiting from this opportunity.
- Trading for Experienced Users: If you're experienced, focus on making trades. Your goal should be to reach a total trading volume of at least $10,000. Additionally, try keeping an open trading position for a few hours, or even a day, but hedge (protect) it to avoid risks from market volatility. Aim for at least 5 trades or transactions; more is better.
- Liquidity Provision for Beginners: If you're less experienced, you can provide liquidity (fund resources) to the app. This is a simple task that involves just a few clicks, but ensure that the amount you provide is over $100.
- Understanding Liquidity Risks and Rewards: By providing liquidity, you become a counterparty to traders. This means if traders make profitable trades, you help cover these profits. Conversely, if traders lose money, you earn yield (returns) on your provided liquidity.
- Arbitrum Incentives: The app offers Arbitrum incentives, giving additional ARB token rewards on top of any yield earned from unprofitable traders. There are also incentives for both makers (limit orders) and takers (market orders - those who take liquidity for trades).
- Engage with Social Media: Follow and actively engage with the project's social media channels. Participation can lead to recognition from the project.
- Earn Discord Roles: Be active on Discord and try to earn specific roles within the community. These roles can signify your involvement and contribution to the project.