Today we are excited to announce that we are partnering with Blackswap to help accelerate the future of liquidity mining! For Method Finance, this represents an opportunity to bring our feature-set and community over to Polygon. For Blackswap, this is an innovative move to embrace cutting-edge technology that will deliver value to DeFi users.
In this article we will lay out some of the high level details of the partnership, as well as give you some info on what to look out for in the coming weeks. If you have any additional questions feel free to reach out to us on either the Method Finance Discord or Blackswap TG.
What is the Method X Blackswap Partnership?
Let’s start by defining what this partnership actually entails. Starting next week, we will be launching a liquidity mining program in which users can stake MTHD/AURORA LP tokens and receive both MTHD and AURORA in return as a reward.
The liquidity mining program will run for 1 month and we will be publishing a user guide and more details on how to enroll in an article next week.
What makes this liquidity mining program unique is that Blackswap is leveraging the full Method Finance feature suite (Method Unistaker, Method NFT Vaults, Method Unitracker). For those of you that are unfamiliar with Method Finance and how we allow for smart liquidity mining, here’s a quick overview.
The Problem that Method Finance Solves
Method Finance was launched with the goal to make liquidity mining more safe and secure for users. How liquidity mining programs typically work is that users stake their LP tokens into a staking rewards contract and then receive a separate reward token as a reward.
The problem with this traditional way of running liquidity mining programs, is that users lose custody of their assets in the process. So if the staking rewards contract has a vulnerability or if the protocol decides to do a rug pull, then the participants will lose all of their LP tokens.
Method solves this problem in a unique way. Instead of a user staking their LP tokens to a staking rewards contract, they mint a Method NFT Vault and stake their LP tokens to the vault instead. Their Method NFT Vault sits in the user’s wallet, which means that the user retains full custody of their LP tokens at all times.
The protocol running the rewards program is still able to distribute rewards to users staking LP tokens to their Method NFT Vaults by leveraging our Unistaker. Essentially what the Unistaker does is it performs a ‘read’ action on all of the Method NFT Vaults, confirms the LP tokens are staked to the vault, and then distributes the rewards from the rewards pool that is configured in the Unistaker.
What is Blackswap?
For those of you that are unfamiliar with Blackswap, Blackswap is a yield-farm on Polygon. They are one of Palette finance’s products, with Blueswap being the BSC solution. As part of their protocol, Blackswap has created a token called AURORA with a unique token burning mechanism that they have incorporated. Below is a screenshot of the tokenomics:
Blackswap offers numerous pairs like AURORA/MATIC, AURORA/USDC, as well as single-sided staking including ETH and DAI among others.
Lastly, similar to Method, Palette finance saw the potential of building on multiple chains. Specifically, they saw the value to users of building on top Matic (Polygon) with the near-zero transaction fees, which they call out in their Blackswap documentation.
Key Details & Next Steps
Below are some of the key details to keep an eye out for in the coming week.
Today: Partnership announcement 🎉
This weekend: MTHD liquidity available on Quickswap 🐉 (note AURORA is already on Quickswap)
Monday, June 21st: Polygon launch week challenges begin + Medium article 🏆 (See our first launch week challenge for an idea of what to expect)
Next week: MTHD/AURORA liquidity mining begins + User Guide published* 🚀
*Official date/time of the start of the liquidity mining program to be announced 12 hours in advance.
We couldn’t be more ecstatic for this partnership and we are excited to see what our communities can accomplish together!
Show some ❤️ by tweeting #MethodXBlackswap