Decentralized exchange (DEX) aggregator and liquidity platform KyberSwap has announced it is launching the first-ever liquidity pools, liquidity mining, and trading campaigns for the $ARB token on the Arbitrum Chain. Arbitrum, Ethereum’s Layer 2 scaling solution, has quickly gained attention as a trendsetting Layer 2 solution due to its ability to increase Ethereum’s transaction throughput while simultaneously reducing transaction costs.
Participants in the $ARB Airdrop include users of the KyberSwap protocol who bridged to Arbitrum in order to complete swaps on the platform. KyberSwap expects that its TVL will rise as a result of the influx of new funds from the Arbitrum ecosystem. In exchange, those that participate in the Arbitrum ecosystem will have access to more earning opportunities on KyberSwap.
The latest development comes on the heels of an announcement by Arbitrum on March 16, that it will distribute a new governance token, $ARB, through an airdrop. The airdrop, expected on March 23rd, will see Arbitrum transition into a self-governing DAO, and is one of the most anticipated airdrops.
KyberSwap $ARB liquidity pool and incentive strategy
KyberSwap is part of the Kyber Network, and it is a decentralized exchange (DEX) aggregator. It offers rates that are optimized for traders and rewards that are designed for liquidity providers in DeFi. KyberSwap has powered 100+ integrated projects and processed over US$15 billion in transactions for thousands of customers.
Users of KyberSwap will have more trading alternatives and liquidity at their disposal with the introduction of the $ARB liquidity pools. By providing $ARB pools with liquidity and taking part in KyberSwap’s liquidity mining activities, liquidity providers will have more chances to earn fees and rewards.
The earnings from using the ARB liquidity provision will be between 2% and 5%, and the $ARB token will be paired with ETH, USDT, and KNC. In the period following the airdrop, when prices are expected to be very volatile and trade volume to be high, $ARB farmers can take advantage of the new fee structures.
Kyber Network has allocated an estimated total of 70,000 of its native as reward incentives. Details and instructions on how to participate in the $ARB token liquidity pools, liquidity mining, and trading campaigns will be made available on KyberSwap’s Twitter page and website in the coming days.
The earnings rates on these pools are significantly higher, having been raised from 1%. KyberSwap will soon announce further awards and events for both liquidity providers, and these farms are just the beginning of a lengthy campaign focusing on Arbitrum.