- Ronin Blockchain, home to the popular Web3 game Axie infinity, has announced that starting from the latest block, it will release rewards for the new RON liquidity pool.
- The Emission rewards previously distributed through WETH pairs will now be available through the new RON pairs.
Ronin has eagerly shared that the rewards for the new RON liquidity pools will kickstart on the Katana DEX today. Additionally, Ronin added that the emission rewards from the WETH pairs would roll over to new RON pairs. The new liquidity pools will play an important role in making RON more liquid and accessible.
Migrating to Delegated Proof of Stake (DPoS)
Ronin’s new liquidity pools will act as the primary market maker by locking pairs of tokens in the respective smart contracts.
Ronin aims to redefine the dynamics of matching buyers with sellers to ensure an operable market for most token pairs. Moreover, to incentivize users, Ronin will provide liquidity providers to earn rewards from trading fees within their liquidity pools.
The opening of these new liquidity pools will play a crucial role in Ronin’s migration to delegated proof of stake (DPoS), making it easier to acquire and stake RON.
Here’s how users can participate in the new Liquidity pools:
- Users deposit liquidity into a RON liquidity pool to receive liquidity pool tokens.
- Users can then stake those liquidity pool tokens and receive RON rewards.
- It’s important to note users will receive rewards in proportion to their contribution to the original pool.
- RON/WETH liquidity pool emission rewards will total approximately 60,422 per day.
- RON/AXS liquidity pool rewards will total about 24,169 per day.
- RON/SLP emission rewards will total around 12,084 per day.
- RON/USDC liquidity pool rewards will total approximately 24,169 per day.
In the official announcement, Ronin shared that they are discontinuing the emission rewards from WETH/AXS and WETH/SLP pools. However, the respective pools will remain open. The blockchain has notified liquidity providers to withdraw and suggested moving to the RON pools.
Additionally, Ronin has updated the UI to prevent further deposits into the farms for the previous liquidity pools. The blockchain has also shared that the Katana analytics dashboard will reflect the new RON pools by next week.
Ronin has also warned users to expect high price slippage on the Katana DEX for a few hours after the rewards are live.
Many blockchain projects are transitioning from the power-hungry Proof of Work (PoW) consensus algorithm to eco-friendly Proof of Stake (PoS). Ethereum, the altcoin market leader, moved to PoS officially last year with ‘The Merge.’
Ronin is also transitioning to a new consensus algorithm, the Delegated Proof of Stake (DPoS), that will reportedly reach consensus faster than PoS. The liquidity pools, as mentioned, will help Ronin officiate its migration.
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