DeGate’s liquidity mining program is designed to reward users who contribute effective liquidity to the order book. Effective liquidity refers to limit orders placed near the top of the buy and sell sides — specifically, those created through grid trading strategies. Only such orders are eligible for rewards, ensuring that liquidity providers support real trading activity and market efficiency.
This guide breaks down how DeGate's liquidity mining works, from eligibility criteria and reward calculation to strategy timing and yield tracking — all optimized for clarity, depth, and search intent.
What Is a Liquidity Mining Pool?
Liquidity mining on DeGate is organized by trading pairs. Each mining pool corresponds to a specific trading pair — such as ETH/USDC — that is either currently active or即将 launching a mining campaign.
These pools are configured and managed by node operators. Users can view available pools directly on the liquidity mining page, where they’ll find details including:
- Trading pair
- Reward token (e.g., DG)
- Mining phase duration
- Total rewards distributed per phase
A single pool may run through multiple phases with varying reward amounts and durations, allowing flexible incentive structures over time.
How to Participate in Liquidity Mining
To earn rewards, users must meet three key conditions simultaneously:
1. Order Type: Grid Strategy Only
Only orders generated via grid trading strategies qualify. Standard limit or market orders do not participate in mining, regardless of placement.
👉 Discover how automated grid strategies boost your earning potential — explore smart trading now.
2. Order Value: Minimum $120 Per Grid
Each individual grid order must have a minimum value of $120. When setting up a grid strategy, users can preview which grids meet this threshold before deployment.
This ensures that only meaningful capital contributions are rewarded, preventing spam or negligible positions from diluting the reward pool.
3. Order Price: Within Dynamic Reward Range
Even if an order meets type and value requirements, it must also be priced within the current reward price range to qualify for rewards.
This range adjusts every 15 seconds based on real-time order book data, making price positioning a dynamic factor in reward eligibility.
🔍 Important Note: Conditions 1 and 2 are static — determined at strategy creation. Condition 3 is dynamic — meaning not all qualifying grids will earn rewards at all times.
Additionally, existing grid strategies created before a mining pool starts will automatically participate once the campaign launches, without requiring reconfiguration.
Understanding the Reward Price Range
The acceptable price window varies depending on the volatility of the trading pair:
✅ For Regular Trading Pairs (e.g., ETH/USDC)
Reward Range =
Best Bid × 0.99 to Best Ask × 1.01
This wider band accommodates typical price fluctuations while still encouraging tight spreads.
✅ For Stablecoin Pairs (e.g., USDT/USDC)
Reward Range =
Best Bid to Best Ask
Due to minimal price divergence between stablecoins, the range is stricter — only orders placed directly within the current spread qualify.
This design promotes high-quality liquidity where precision matters most.
How Rewards Are Calculated and Distributed
Rewards are recalculated every 15 seconds across all eligible orders in a given pool. Distribution follows a pro-rata model based on each order’s value relative to the total qualifying liquidity.
Example Calculation: ETH/USDC Pool
Let’s walk through a real-world scenario:
- Your grid strategy meets the $120 minimum per grid.
Current order book shows:
- Best Bid: $1,495
- Best Ask: $1,502
- Reward Range: $1,480.05 to $1,517.02
- You have a sell order at $1,510 for 1 ETH → within range ✅
- Risk-adjusted value: 1 ETH × $1,495 (risk price) = **$1,495**
- Total value of all eligible grid orders in pool: $42,391
- 15-second reward allocation: 10 DG
Your share:
$ \frac{1,495}{42,391} \times 10 = 0.3527\ \text{DG} $
This process repeats every 15 seconds, compounding rewards over time.
Grid Strategy Duration Requirement
To discourage short-term farming behavior, DeGate enforces a minimum runtime requirement for grid strategies.
- Rewards earned during the initial period are marked as "Not Yet Claimable"
- Once the strategy runs long enough, rewards become "Claimable"
- If you cancel early, unclaimed rewards are forfeited and returned to the pool
For example:
A mining campaign ends on October 30, 2025 at 22:00 UTC, with a 12-hour minimum runtime. To qualify, you must create your strategy by 10:00 UTC on the same day.
This ensures sustained participation and genuine liquidity provision.
Claiming Your Mining Rewards
Users can claim their available (claimable) rewards at any time. Each claim requires a gas fee for transaction processing. Upon success, tokens are instantly transferred to your DeGate account.
There’s no deadline for claiming — but delaying increases exposure to price volatility or changes in strategy performance.
Tracking Performance: Mining vs. Pool Yield
DeGate provides detailed analytics so users can monitor their returns.
🔹 Personal Mining Yield
Calculated per grid strategy using:
- Total DG rewards earned
- Initial capital invested
- Actual mining duration (overlap between strategy and pool timelines)
⚠️ Note: Mining duration isn’t displayed in-app — users must calculate it manually based on strategy and pool schedules.
Yield often starts high and gradually declines as time increases — especially in long-running strategies.
🔹 Pool Yield (Estimate)
Reflects projected daily return based on:
- Current total rewards
- Aggregate capital committed by all users (only counting orders meeting value criteria)
Since pool yield doesn’t account for price eligibility — only value — it tends to be lower than personal yield, especially when many participants fall outside the reward range.
👉 Maximize your yield with precision trading tools — start optimizing today.
Core Keywords for SEO Optimization
To align with search intent and improve discoverability, these keywords are naturally integrated throughout:
- liquidity mining
- DeGate grid strategy
- order book liquidity
- crypto yield farming
- automated trading rewards
- effective liquidity provision
- DeGate mining pool
- grid trading ROI
These terms reflect common queries from traders exploring decentralized platforms for passive income and algorithmic trading integration.
Frequently Asked Questions (FAQ)
Q: Can regular limit orders earn mining rewards?
A: No. Only orders created through grid trading strategies are eligible for liquidity mining rewards on DeGate.
Q: How often are rewards distributed?
A: Rewards are calculated every 15 seconds, but you must manually claim them from your dashboard.
Q: Why didn’t my grid earn rewards even though it was active?
A: Your order may have been outside the dynamic reward price range, which updates every 15 seconds based on order book depth.
Q: Is there a penalty for canceling early?
A: Yes. Any unclaimed ("not yet claimable") rewards are lost if you cancel your strategy before meeting the minimum runtime requirement.
Q: Does DeGate support multi-token rewards?
A: Yes. The protocol supports multi-currency reward distributions, and project teams can collaborate with DeGate to launch custom mining pools.
Q: How is risk price used in reward calculations?
A: Risk price (typically aligned with the best bid) is used to value assets conservatively during reward distribution, protecting against overvaluation during volatility.
Partner Opportunities
DeGate welcomes collaboration with projects looking to incentivize liquidity for their tokens. Custom mining pools can be designed with tailored reward schedules, durations, and multi-token distributions.
This opens opportunities for token issuers to bootstrap deep, sustainable markets using algorithmic trading infrastructure.
👉 Build sustainable liquidity with next-gen trading mechanics — learn more here.
By combining algorithmic precision with decentralized incentives, DeGate redefines what it means to provide liquidity in Web3 markets. Whether you're a seasoned trader or new to automated strategies, understanding these mechanics empowers smarter participation — and stronger returns.