Liquidity Mining

MONDA Liquidity Mining: Earn More with Active Participation

MONDA’s liquidity mining system is designed to reward liquidity providers (LPs) based on actual contributions, ensuring that incentives go to those who actively participate in deepening market liquidity. Instead of simply rewarding LPs for depositing assets, MONDA distributes rewards based on real trading activity and fee generation, creating a more efficient and performance-driven liquidity ecosystem.

Position NFTs: Proof of Liquidity Ownership

When a user provides liquidity on MONDA, they receive a Position NFT, which serves as a unique ownership proof of their liquidity position. This NFT is more than just a record—it’s a functional asset that allows LPs to:

✅ Collect swap fees generated by their position

✅ Earn liquidity mining rewards based on real trading activity

✅ Stake in certain smart contracts for additional incentives

Each Position NFT contains detailed metadata, including:

🔹 Unique ID

🔹 Pool Address

🔹 Position Index

🔹 Liquidity Amount

🔹 Custom Price Range (Lower & Upper Tick Index)

By structuring liquidity as NFTs, MONDA enables greater flexibility for LPs, allowing them to trade, transfer, or stake their liquidity positions as standalone assets.

Fee-Based Liquidity Mining: Earn Based on Real Market Contribution

Unlike traditional liquidity mining models that reward LPs solely based on deposit size, MONDA prioritizes efficiency by distributing mining rewards based on actual fee performance. This means LPs who position their liquidity in active price ranges—where trades are actually happening—earn the most rewards.

🔹 More trades in your price range = More fees earned

🔹 Higher fee generation = Bigger share of mining rewards

🔹 Inactive liquidity doesn’t dilute the rewards pool

This performance-driven model ensures that incentives go to active participants, preventing liquidity dilution from users who simply deposit assets without optimizing for real trading activity.

How Rewards Are Distributed

MONDA’s smart contract continuously tracks fee generation across all liquidity positions. When a trade occurs, the system:

1️⃣ Calculates each position’s proportion of total fees generated since the last transaction

2️⃣ Releases rewards linearly, distributing them based on actual contribution

3️⃣ Prevents dilution, ensuring that inactive LPs don’t drain the reward pool

This dynamic approach makes MONDA’s Total Value Locked (TVL) more efficient than traditional DEXs, providing higher capital efficiency and better incentives for active liquidity providers.

Why MONDA’s Liquidity Mining Model Stands Out

🚀 Performance-Based Rewards – Earn based on real fee generation, not just deposit size

🔄 Position NFTs – Trade, transfer, or stake your liquidity positions

💰 No Dilution – Inactive LPs don’t drain rewards, ensuring efficient TVL

📈 Deep Liquidity Incentives – Encourages strategic LP participation for optimal market efficiency

MONDA is redefining liquidity mining, making it more fair, transparent, and rewarding for those who actively contribute to the ecosystem. 🌊💎