The 1inch Network has officially announced the launch of its new liquidity mining initiative, which will be accompanied by a significant upgrade to the 1inch Liquidity Protocol, now moving to version 1.1. These updates aim to enhance user experience, improve governance mechanisms, and offer fresh opportunities for liquidity providers.
This strategic rollout underscores 1inch's ongoing commitment to refining its ecosystem and rewarding its community of users.
Key Details of the New Liquidity Mining Program
The new liquidity mining program is scheduled to commence on January 9 at 00:00 UTC. Liquidity providers can participate by contributing to one of the five designated liquidity pools.
The following pools will be included in this new initiative:
- ETH-1INCH
- ETH-DAI
- ETH-USDC
- ETH-USDT
- ETH-WBTC
A total of 1% of the entire 1INCH token supply will be distributed to liquidity providers across these five pools. The rewards will be allocated in equal shares, and the program is set to run for a duration of one month.
This presents a significant opportunity for participants to earn rewards by contributing to the protocol's liquidity depth.
Transition from the Previous Program
The previous liquidity mining program has concluded successfully. Reports indicate that participants earned a combined total of 7.5 million 1INCH tokens, which corresponded to an impressive average Annual Percentage Yield (APY) of approximately 300%.
Concurrently, the distribution of governance rewards has been operational for nearly two weeks, with over 632,000 1INCH tokens already distributed to users who participated in the platform's governance activities.
Introduction of 1inch Liquidity Protocol v1.1
The new mining program coincides with the release of 1inch Liquidity Protocol version 1.1. This upgrade introduces crucial improvements, primarily focused on the governance mechanism.
The development team identified a minor irregularity in the previous protocol version that had the potential to affect the accuracy of vote counting within the Decentralized Autonomous Organization (DAO) governance model. Version 1.1 includes a fix for this issue, ensuring that all governance votes are tallied correctly and reliably.
This enhancement strengthens the foundation of 1inch's community-led governance, providing greater integrity and transparency for all stakeholders. To explore more strategies for participating in DeFi governance, understanding these technical upgrades is essential.
How to Migrate to the New Program
With the new protocol version comes new liquidity pools and mining contracts. Therefore, users who wish to participate in the new program must migrate their assets from the old incentive programs to 1inch Liquidity Protocol v1.1.
The migration process involves a few key steps:
Withdraw Assets from the Old Program: Users must first withdraw their LP tokens from the previous liquidity mining contracts. The interface provides several functions:
- Deposit: To stake LP tokens obtained from providing liquidity.
- Claim: To collect earned 1INCH token rewards.
- Withdraw: To remove some or all of your staked LP tokens.
- Exit: A convenience function to claim all rewards and withdraw all LP tokens in a single transaction.
- Utilize the Migrator Tool: After withdrawal, users can employ a dedicated "migrator" tool. This gateway facilitates a seamless swap of assets from the old protocol version to the new one in a single transaction.
Step-by-Step Migration Guide
To migrate your LP tokens to v1.1, follow these steps:
- Navigate to the 1inch swap interface.
- In the "You Pay" section, select Liquidity Pool v1.0 for the specific pool you are migrating from (e.g., ETH-USDC v1.0).
- In the "You Receive" section, select Liquidity Pool v1.1 for the exact same pool (e.g., ETH-USDC v1.1).
- Ensure you have sufficient ETH in your wallet to cover the transaction fee.
- Click the "Swap" button to execute the migration.
This process efficiently converts your old LP tokens into new ones compatible with the upgraded protocol and the new mining program.
Furthermore, migrator support is also available for users looking to move their liquidity from other protocols such as Mooniswap, Uniswap, and SushiSwap directly to 1inch Liquidity Protocol v1.1, broadening the accessibility of the new program.
Frequently Asked Questions
Q: When does the new 1inch liquidity mining program start?
A: The program officially begins on January 9 at midnight (00:00 UTC). It will run for one full month.
Q: Which pools are eligible for rewards in the new program?
A: Rewards are distributed to providers in five specific pools: ETH-1INCH, ETH-DAI, ETH-USDC, ETH-USDT, and ETH-WBTC. Each pool receives an equal share of the total reward allocation.
Q: Why was an upgrade to the protocol necessary?
A: The upgrade to version 1.1 primarily fixes a minor issue related to DAO governance vote counting. The new version ensures all governance votes are accurate and reliable, strengthening the decentralized decision-making process.
Q: I provided liquidity in the previous program. What do I need to do now?
A: You must withdraw your LP tokens from the old mining contracts and migrate them to the new version 1.1 pools to participate in the new incentive program and continue earning rewards.
Q: Can I migrate liquidity from other exchanges like Uniswap?
A: Yes, the 1inch platform offers migrator tools that allow users to move liquidity from other protocols, including Uniswap and SushiSwap, directly into the new 1inch Liquidity Protocol v1.1 pools. To view real-time tools and interfaces for managing your assets, always ensure you are using official channels.
Q: What was the APY in the previous liquidity mining program?
A: The previous program was highly successful, offering participants an average APY of around 300%, with a total of 7.5 million 1INCH tokens distributed.