Impermax Airdropped 14 Million IMX Tokens to 35,000 Uniswap V2 Liquidity Providers
British Virgin Islands – Launched in 2018, Uniswap is a decentralized exchange protocol that allows users to swap between any two ETH-based tokens. Apart from providing a simple platform to liquidity providers, Uniswap has made the whole process of providing liquidity and earning trading fees a lot simpler.
Uniswap liquidity providers earn trading fees on every trade made on Uniswap. In return, the liquidity providers facilitate trading between different ETH-based tokens, which will improve the trade volume and the popularity of the platform.
On September 17th, 2020 Uniswap launched its UNI token with a massive airdrop that distributed 400 UNI to all the users who used their protocol in the past. In total, 15% of UNI total supply was distributed through the airdrop.
Following the same pattern, Impermax Finance, a DeFi lending protocol, airdropped 14 Million IMX tokens to 35,000 Uniswap V2 Liquidity Providers on April 29. Each one of the 35,000 received 400 IMX, an amount inspired by the notorious UNI airdrop. IMX token is a governance token with a max supply of 100 million, and the airdropped amounts to 14% of its total supply.
Uniswap V2 Liquidity Providers welcomed this news with great excitement as they will be able to leverage these tokens to add liquidity to the pools and earn rewards.
- Impermax Finance airdropped 14% of IMX Governance token from the max supply of 100 Million tokens to 35,000 Uniswap V2 Liquidity Providers on April 29. LPs that were providing at least $952 in liquidity to Uniswap V2 on April 25 at the time of the snapshot are eligible to claim the 400 IMX airdrop.
- To claim the airdrop, Liquidity Providers can visit the Impermax app, connect their wallets, and claim the tokens through the claim button.
- The IMX TGE goes live on Uniswap on April 29 at 12:00 pm UTC with a starting circulating market cap of $1.8 million.
- This airdrop was aimed to distribute IMX governance participation.
- This airdrop will also help increase usage across the Uniswap Liquidity Provider base, which are intended to be the primary users of the platform.
- Impermax is trying to increase awareness of leveraged liquidity provided in the DeFi industry. This protocol helps Liquidity Providers boost their yields by x20 by borrowing against their LP token holdings.
- The ability to use LP tokens as collateral for borrowing can potentially utilize billions of dollars that are locked in LP token contracts.
Why Impermax Finance is a breakthrough in DeFi
Impermax Finance is an advanced DeFi ecosystem that helps Liquidity Providers to leverage their LP tokens and holdings by creating a set of financial tools based on these tokens. It is a permissionless lending market that Liquidity Providers can utilize to leverage LP tokens as collateral to borrow other tokens in their ETH pair. For instance, Liquidity providers can use the LP token of the pair ETH/DAI as collateral to borrow DAI or ETH.
Impermax Finance acts as the missing piece in the automated market maker’s puzzle, which is full of inefficiencies. Impermax solves this problem by using its lending protocol that relies entirely on LP tokens.
This innovative collateralization model designed for LP tokens will help Liquidity Providers to take advantage of the fact that the assets are directly backed by the collateral. The first AMM that the company added is Uniswap V2.
This airdrop was also an aim to incentivize the Uniswap V2 Liquidity Providers in trading IMX and boost the popularity and usage of Impermax Finance.
This airdrop of 14 million IMX was followed by a Pre-launch airdrop by the company. In that airdrop, the company focused on their early supporters and airdropped 500,000 IMX to the users who utilized their protocol before April 29. However, both the airdrops took place on April 29, which is also the official date for their token launch.
For more information about the airdrop and the platform, you can visit their official website.