An article to understand the working principle of Baccarat liquidity mining
Recently, NGK officially announced that in order to avoid excessive concentration of BGV and lead to large-scale manipulation and bring losses to the ecological builders participating in Baccarat, NGK officially decided to modify the original distribution mechanism of Baccarat and adjust the relevant liquidity mining rules. It is reported that the adjustment is mainly to reduce the speed of liquidity release of BGV, while lengthening the release cycle.
As soon as this news came out, it attracted the attention of many ecological builders in the DeFi market. This is great news for ecological builders but at the same time, many eco-builders who have not yet participated in Baccarat are curious about how does Baccarat work?
In Baccarat, there are two roles: market maker and exchanger. When LP deposits funds in the liquidity reserve pool, it provides liquidity for the market and every convertor can freely convert on it. When the exchanger uses the exchange function, a handling fee will be incurred. The generated fees will be returned to the liquidity reserve pool and used to be evenly distributed to each LP that provides liquidity. At the same time, the Baccarat platform will mine BGV coins according to the ratio of comrades in the liquidity reserve pool, and distribute BGV in a weighted manner with a 24-hour time unit.
It is worth noting that Baccarat is different from most DeFi projects on the market. It is launched by the NGK platform with a low handling fee where exchangers participating in Baccarat will not incur high transaction costs. In addition, the storage capacity of Baccarat is also large, so it will not cause bad transaction experience such as network stalls and delays for ecological builders.
Currently, Baccarat plans to issue 60,000 BGV coins, of which a maximum of 277 BGV will be issued daily. All BGV will be issued according to the proportion of liquidity reserve pool and individual occupation. At the same time, in order to ensure the transparency of distribution and ensure the efficiency of distribution, the platform will record the proportion of the entire network every half an hour, and then perform weighted distribution after obtaining the final statistics.
From the above analysis, it is obviously shows that Baccarat is very fair to every ecological builder. Every ecological builder can participate in Baccarat’s ecological construction with a very low threshold.
Currently, Baccarat is still in its early stages, but this does not mean that it is immature. Baccarat has now gone through several rounds of internal testing, and after continuous internal testing, existing problems will be changed. It can be said that Baccarat’s project team is very responsible to every ecological builder. Therefore, Baccarat in which the ecological builders participate is a mature and complete decentralized trading platform. At the same time, it also has unique advantages in anti-censorship, decentralization, and anonymity, which also makes it more popular within ecological builders in the future.
