Users are incentivised to provide liquidity, use the SORA network, and support the set of network validators. There are different reward types depending on the activity.
Let's describe all the currently available rewards in detail:
Here is a quick summary of every reward.
Polkaswap is distributing an amount of PSWAP proportional to trade volume to market makers who conduct at least 500 transactions per month, with a per-transaction amount of 1 XOR or more (excluding transaction costs).
Polkaswap users will earn PSWAP tokens for providing liquidity in any XOR-paired pool. If you contribute to the XOR-VAL, XOR-PSWAP, XOR-DAI, or XOR-ETH pools, your reward is doubled.
A token bonding curve is a smart contract that takes one token as an input and outputs another, using a mathematical formula. A token bonding curve can automatically issue, sell, and buy tokens at prices that are determined by the mathematical functions used.
The PSWAP rewards to be earned are calculated exponentially as a function of current reserves: the lower the reserves at a given time, the greater your rewards for helping boost them.
The first way to earn PSWAP rewards on Polkaswap is to provide liquidity on the DEX with XOR and any other token. Liquidity providers get 0.3% of each swap in fees so that they will earn PSWAP for providing liquidity to the pool. Then more users trade, the more liquidity providers get.