Project Ignition is a $10M liquidity initiative for the Radix Network designed to enhance liquidity for USDC, USDT, wBTC and ETH. Project Ignition matches each dollar Liquidity Providers (LPs) provide with an equal amount of XRD, effectively doubling the liquidity provided. LPs receive up to 20% of the provided value upfront in XRD and can claim trading fees while receiving protection from impermanent loss.
Project Ignition will be going live on March 14th, 2024, and will be integrated with leading Radix DEXs Ociswap, CaviarNine, and DefiPlaza, which will serve as the gateway for users to access the Ignition incentives via specific liquidity pools.
Once liquidity is provided via one of the DEX front-ends, users will immediately receive an unlocked payment in XRD of up to 20% of the value of the tokens they provide as liquidity, depending on the lock-up period of the liquidity (9-12 months.)
As the user in Project Ignition is only providing liquidity on the wBTC/USDC/USDT or ETH side, the user is 100% protected from any XRD impermanent loss.
If the asset the liquidity provider has provided (wBTC/USDC/USDT/ETH) outperforms the RADIX token, the liquidity provider receives a value guarantee for up to a 4x outperformance of the asset provided, and then a sliding amount of asset value protection beyond a 4x change. See the Project Ignition Details document for a detailed breakdown of the IL protection.
To participate in the liquidity campaign, you must first bridge assets into the Radix ecosystem via Instabridge. Alternatively, you can purchase these assets via participating Radix DEXs.
How to use Instabridge and Instapass
Instabridge is a bridging service that allows you to swap eXRD for XRD and send ETH, wBTC, USDC, and USDT to receive wrapped, one-to-one backed versions on Radix. All wrapped assets on the Radix network issued by Instabridge will be designated with an "x" at the beginning (e.g. xETH).
Instapass is a KYC service that uses industry-leading data security practices and uses service providers, such as SumSub, who are ISO/IEC 27001 compliant. You need to verify your identity via Instapass, and link to your Instabridge account before you can bridge assets.
You will need to follow the below steps before you can supply liquidity
Before you begin, you must download and install the Radix Wallet and Connector extension.
Step 2: Once done, link your Instapass account to Instabridge. Authorise Instapass to connect to your Instabridge account and log in using Metamask.
Step 3: Now you have verified and linked your Instapass and Instabridge accounts, you can use Instabridge to swap your tokens between your Ethereum Wallet and Radix Wallet.
Step 4: Once you have wrapped assets in your Radix Wallet, you can connect to your chosen dApp to supply liquidity into the following Project Ignition-compatible pools, which will be announced once Project Ignition is live on March 14th.