Hxro, a gamified crypto derivatives platform that offers a simple way for users to play the market, has announced the public launch of the Hxro Liquidity Producer Pool with the following lead entities as marquee participants:
- Alameda Research
- CMS Holdings
- Arca Funds
- Three Arrows Capital
- Ledger Prime
- Acheron Trading
Hxro’s core product, MoonRekt, is a peer-to-peer parimutuel market offering transparency, fairness, and opportunity to its users.
The Liquidity Producer Pool (LPP) is at the heart of the Hxro ecosystem
Interested parties can become liquidity producers by claiming a minimum of one full LPP unit. In order to claim a unit, an LP must stake a minimum of 250,000 HXRO tokens for a one-year term. In exchange for a full LPP unit, the LP will unlock fee discounts and rebates on Hxro platform transactions as well as earn a pro-rata share of ⅓ of net network transaction fees spent by users on the platform.
The LPP model will help bootstrap the entire HXRO ecosystem across four main areas:
- Staking – To qualify for full LP incentives, a participant must hold at least one full unit. Participants generally have to go to the market to procure 250,000 HXRO. This locks up a growing percent of tokens. LP’s are required to lock tokens for one year in order to earn LP incentives.
- Volume Tiered Incentives – Since LPs are offered large fee discounts and rebates, they are incentivized to be more active in Hxro’s products which drives more usage and consistently deeper liquidity to the platform.
- Reflexivity – Increased liquidity attracts even more new users and LPs to the platform who in turn become more active participants in the network.
- Virtuous Liquidity Cycle – The increased liquidity and usage drives fees to the platform which incentivizes existing and new users to lock up HXRO and become LP participants which creates a virtuous cycle.
Community LPP participation
For the 12-month period beginning June 2020, 100 units were created. 80 LP units were claimed by LPP lead participants. The remaining 20 units will be offered on a fractional basis through a community LP staking program to be launched on the Hxro platform in the coming weeks. Additionally, there will be more units released to the market based on a number of economic factors that are explained in a more comprehensive report to be released soon.
Platform users will be able to participate simply by moving their desired amount of HXRO from their platform wallet to an LP staking wallet. Staked HXRO will be locked for one year from the date it is sent. Fractional units will participate pro-rata in the same LPP rewards as full seat holders which is ⅓ of net network transaction fees spent by users on the platform. While fractional unitholders will not qualify for the same fee discounts as full unit holders, staked balances will still apply to standard platform discounts and volume-based incentives.
Hxro will be posting a comprehensive report and paper on the mechanics of the Liquidity Provider Pool in the near future, which will be linked here.
Please note: Participation in the LPP and on the Hxro platform is strictly prohibited in the United States, Bermuda, and other restricted jurisdictions.