Jupiter successfully airdropped its native token, JUP, making it one of the largest token airdrops on the Solana blockchain.
The DeFi “market maker,” rewarded its early supporters with ~$700M in tokens. As the airdrop dropped, JUP jumped from $0.41 to $0.72, sending the token’s diluted market cap above $6B.
Solana remained fully operational during the influx of traffic and the network experienced greater activity than Ethereum.
Liquidity pools are the backbone of many decentralized exchanges (DEXs). They are smart contract-based pools of tokens locked in a reserve that facilitate trading by providing liquidity. In traditional finance, liquidity refers to the ease with which an asset can be converted into cash without affecting its market price. In DeFi, it refers to the availability of assets for trading in a DEX 🌐💰.
Taking the Plunge: How Do Liquidity Pools Work?
Liquidity pools depend on liquidity providers (LPs) – users who lock up their tokens in a smart contract to facilitate trading. In return, LPs earn transaction fees based on the proportion of their contribution to the pool. The tokens are often locked in a 50/50 ratio, meaning if you provide $100 worth of ETH, you must also provide $100 of the paired token 🔄.
Key mechanics of liquidity pools:
The Lure of the Pool: Benefits of Liquidity Pools
Liquidity pools come with a set of benefits that are enticing to many in the DeFi space:
Mixin Network got hit with a $200M exploit, but there is a plot twist—they’re offering the hacker a $20M “bug bounty” to return the funds. 🌌
Yes, you read that right. They’re like, “Hey, Mr. Hacker, keep $20M and give us the rest back.”
Bitget just dropped a study that gives us a peek into what crypto comrades around the world are really after. 👨🔧
Spanning from May to August 2023, this research roped in over 1,500 participants from 20 countries. We’re talking Europe, China, Japan, South Korea, Turkey, and a few English-speaking nations.
In a bold move, Yearn Finance ($YFI) has thrown down the gauntlet to hackers. “We want you to hack us,” they’ve declared, opening up almost all permissioned functions on their vault. 🎯
🚨We want you to hack us.🚨