The Testnet, an introduction to Pera Swap Farming
Today, we are very excited to open the Testnet for the public. Before you try it out, we would like to walk you through what a Testnet is and give you an intuition of how our new swap farming tool works.
Refer to this link to direct you to the Testnet.
What’s a Testnet?
Testnets are crucial in the development process of a protocol, a testnet network is an almost identical copy of a blockchain of a cryptocurrency, used to test new features and implement changes to the protocol, without the risk of affecting the protocol and its users. Protocols go through a mock run to detect errors and check everything that might be exploited by hackers, making them crucially important for the development process.
Testnets are not only important for the developing team but also beneficial for the platform’s users. By participating in a Testnet run, users are acquainted with the newest features of the protocol. Testnet networks use their cryptocurrency, which is a copy of the original chain’s assets. Faucets are used to obtain those “copy” cryptocurrencies.
Cryptocurrency Faucets:
A crypto faucet is an app or a website that distributes small amounts of cryptocurrencies. Interacting with them has no reflection on the public blockchains. It is impossible to transfer cryptocurrencies from a testnet to an active blockchain and vice versa.
Click here to get your Testnet AVAX
We are currently utilizing Avalanche’s Fuji Testnet to assess the issues that may arise throughout the implementation process. The Testnet is to introduce our new swap farming tool to the DeFi space.
Swap Farming
We’ve spent several months in the lab analyzing the problems emerging in DeFi, beginning from inspecting how AMMs work in general, and whether their platforms are as sustainable as they deem them to be. Looking for solutions to fix the underlying DeFi problems. We believe we’ve just come up with one.
Most of the DEXes are Uniswap V2 forks differing in swap fees and native token emissions. Aside from Uniswap, almost all of the AMMs use native token emissions to bootstrap liquidity to the platform. Incentivizing LPs to provide the necessary conditions(deep liquidity provides less slippage) for traders. Aiding in generating more trading volume and collection of more swap fees.
But, generating swap fees and keeping emissions under control is not an easy task. The research has shown that if not supervised, measures taken to bootstrap liquidity, incentivizing LPs with high emissions, could potentially harm the platform and its users.
In a space where many AMMs couldn’t generate enough fee revenue, and liquidity pools being heavily subsidized with native token emissions DEXes seek solutions to aid them in capital management.
In our research, we considered three months’ average TVL and daily on-chain trading volume data of various liquidity pools in different DEXes.To observe the cause and the effects of underutilized liquidity. Our research emphasizes the importance of trading volume, demonstrating that volume should be the main goal for an exchange, not TVL.
Stay tuned for the detailed paper on our research.
Pera Finance is designed to provide on-chain trading volume boosting services to partners’ selected liquidity pools to incentivize traders, increase pool efficiency, and improve user experience.
Why just incentivize LPs when traders are the ones generating trading volume?
Most protocols focus on liquidity bootstrapping to ensure deep liquidity for traders to benefit, but they only choose to incentivize LPs. But, the DeFi space is lacking trader incentives, which are proven to attract more traders to the platform and increase trading volume.
Here is how partner AMMs could utilize Pera swap farming tool, optimize their platform, and gain a competitive edge while improving user experience.
With PERA’s trade(swap) farming services AMMs can customize and integrate our tool to incentivize traders:
Pera Swap Farming can be integrated into any selected liquidity pool, allowing DEXes to reward traders in proportion to the generated fees by swapping between the selected pair forming the liquidity pool.
- Offer cash backs to selected liquidity pools to bring them close to zero-fee pools:
The tool allows DEXes to mimic zero-fee pools by refunding traders their service fees, and allow them to swap to their heart’s content, instantly boosting trading volume.
- And for the first time, offer APR to traders in proportion to their contribution.
How would the ecosystem benefit from it?
The collected fees should be managed and emissions must be distributed in a more controlled manner and should be utilized later with Pera Swap Farming Services to further incentivize users. PERA Finance, the first DEX optimizer designed to boost trading volume.
Now with PERA, traders can enjoy low swap fees with reimbursement incentives by the protocol, while platforms enjoy a competitive edge, highly contributing to the sustainability of the ecosystem.
Pera Swap Farming tool introduces volume-based farming to DeFi space for the first time in DeFi space.
Testnet Walkthrough
To participate in the Testnet all you need to do is follow this step-by-step guide.
Testnet Giveaway, how to participate?
Since this will be the first display of our services in parallel to the starting of our migration process, we are hosting a swap farming competition, from March 15th to March 22nd. Everyone is welcome to join and compete for the rewards. A total of $10,000 worth of $PERA will be distributed to participants, in proportion to their activities.
All you need to do is follow the walkthrough and you will be eligible to enter. The number of participants is not limited, and there are no prerequisites to enter.
Furthermore, if you want to earn some more $PERA, we have some additional tasks for you.
The first additional task is worth $50 worth of $PERA, per person, distributed to 10 people.
You only need to:
- Retweet the Testnet tweet,
- Tag 3 of your friends and PERA,
- Include your PERA wallet address.
The second task is also worth $50 worth of $PERA, per person, distributed to 10 people.
To be eligible for rewards, you need to:
- Tweet about your Testnet experience within the Testnet week
- Tag 3 of your friends and PERA
- Include your PERA wallet address.
Disclaimer: All the rewards will be distributed randomly. The parties who have failed to complete the given tasks and did not include their PERA wallet addresses will not be eligible for rewards.
About Pera Finance
Pera Finance is the first DEX optimizer, designed to secure and boost long-term trading volume, improving the capital efficiency for the entire DeFi space. Pera Finance is a service provider offering decentralized trading competitions with customizable parameters, and adjustable swap farming tools to manage protocols’ liquidity while improving user experience. Pera Finance aims to become DeFi’s most sustainable protocol by introducing innovative volume-boosting tools to the DeFi space and improving the user experience.
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