Hop Docs
User Docs
User Docs
User Docs
  • Welcome
  • Basics
    • A Short Explainer
    • What is special about Hop?
    • How to bridge with Hop
    • How long does a transfer take?
    • Fees
    • Providing Liquidity & Rewards
    • Transfer failures
    • Manual Withdrawals
    • USDC.e Manual Withdrawals
    • FAQ
      • How to manually withdraw your tokens on the destination chain?
      • How to use Hop with a Gnosis Safe?
      • My funds are stuck on a Layer-2 network because I can't pay the gas needed for transactions
      • Can I access Hop Protocol through other interfaces than Hop.Exchange?
      • Why can I not access Hop.exchange?
      • Hop labels my transaction as completed but I can't "see" my tokens in Metamask
      • Do I need to pay transaction costs on the destination chain before I receive my tokens?
      • What are the fees for transfering tokens with Hop?
      • What is Hop Protocol?
      • How safe is Hop?
      • How long does a Hop transfer take?
      • I sent a token but it's not arriving at the destination
      • How do $OP on-boarding rewards work?
      • What do I need in order to provide liquidity on Hop?
      • Do I need to add Hop tokens and native tokens in equal weights?
      • How does a Hop token hold its peg with its native counterpart (e.g 1hUSDC = USDC)?
      • How do I get Hop tokens (hTokens)?
      • Can I buy hTokens on L2?
      • Why does my LP token balance show less than I deposited?
      • How does a rogue chain affect my LP position on another chain?
      • Who can become a Bonder?
      • What is a "Transfer bond"?
      • What is a "Transfer root"?
      • What does “The Bonder” do?
      • What happens if The Bonder bonds fraudulent transactions?
  • Governance
    • Into to Hop DAO
    • How to Vote
    • Becoming a Delegate
    • Liquidity mining
    • Token Distribution
    • Protocol Fees & Public Good Funding
    • Roadmap
    • Important Links
  • Stats
    • Links to Stats Dashboards
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  1. Governance

Liquidity mining

Last updated 2 years ago

As one of its first actions, the Hop DAO enacted a liquidity mining campaing to attract liquidity in the bridge AMM's. Maintaining a high level of AMM liquidity is important for keeping bridging costs low and rates competitive. Higher AMM liquidity allows users to bridge large amounts with less slippage.

This is especially important for arbitrageurs. Bridge arbitrageurs make tight margins and need to offset their gas costs. Being able to transact in larger volumes with less slippage allows arbitrageurs to keep price differences across networks closer. Smaller price differences mean better rates for all users.

The campaign is issuing 2,200,000 HOP every month (around 2.6% annualized) split across the ETH, USDC, DAI, and USDT bridges. The split is based on the % of total volume a given bridge AMM receives and can be adjusted by the Hop governance.