Outside of the recent LAND presale, Sandbox has entered into a series of partnerships that resulted in the listing of its token on Binance (BNB), Crypto.com (CRO) or WazirX. After this step, the company decided to improve the liquidity of its utility token on the various decentralized exchanges. It has therefore just set up a SAND liquidity mining program intended for the public. To motivate suppliers, a monthly prize pool of 1.5 million SAND has been planned to be shared in proportion to the percentage of total liquidity of the traders over this period. More explanations below.
A program to provide more liquidity to the SAND / ETH pair
This program is aimed initially at all traders who use the SAND / ETH pair. With already $ 200,000 in cash to his credit, the pair should benefit from this incentive to improve their stock. This will offer the market a much stronger trading base for those who want to use the SAND token in a non-private way. To participate in the Sandbox liquidity mining program, providers will need to acquire SAND on Binance or Uniswap and store it in a non-private web3 wallet. They can then connect to the SAND / ETH liquidity pool on Uniswap and make the deposit of their choice there.
The first test phase which has just been launched will last two months with a fixed rate monthly reward plan of SAND 1.5 million. To be eligible, liquidity providers will therefore have to wager their SAND / ETH tokens via the implementation dashboard by TheSandbox. The latter also explores other creative possibilities to offer unique incentives that align with the larger ecosystem of non-fungible tokens. An evaluation of the program will then be carried out by Sandbox after the two-month trial, taking into account feedback from the community. Apart from the SAND / ETH pair, the use of other viable protocols is currently being explored to boost the cash-mining program.
Yield multipliers based on LAND ownership
For the second phase of the program, it was planned to modify the reward plan by involving more the community of TheSandbox. Currently, LANDs are “an essential mechanism for game makers to monetize their creations in SAND”. The second phase will therefore propose an incentive combining NFTs and SAND through the application of a yield multiplier. Thus, the yield should be increased in proportion to the number of LANDs held by a liquidity provideré. This will be done in particular by linking virtual real estate and SAND liquidity. But before we get to this point, TheSandbox will set up a native dashboard to connect the acquired LANDS.
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After DeFi protocols like Balancer or Compound, TheSandbox has therefore opted for the liquidity mining solution to offer more visibility to SAND users. Another parallel program for early adopters of the asset is expected to emerge in the coming weeks.