What are Liquidity Bonds?
In any DEX, liquidity is vital to be able to trade different cryptocurrencies.
Normally this liquidity provided by users is rewarded through the use of the DEX governance token.
To incentivise DEX liquidity in a sustainable way, we use liquidity tokens. You deposit your LP (liquidity representative currency, composed of two assets at 50% of each).
When you deposit this LP, the liquidity belongs to the DEX, in exchange you receive different multipliers to your initial investment, so if for example you invest 100 hams, you will receive 180 jamones spread over a year.
With this the user receives a value to his contribution while the DEX grows. The availability of these bonuses is given by the issuance limit given by the Jamonswap Team, estimated at 50 million per year. In this way, by issuing little new currency and encouraging burning with different Dapps (functional external applications), they achieve a native currency of a deflationary DEX, so its value has an upward trend, as there are fewer and fewer coins available on the market.
In addition to the above mentioned bonds also have JSTLPs as a reward.
Want to know more about JSTLPs?