🔸Liquidity Mining

BRSK supports the exchange issuance method for BVER and BVER-A ecological tokens on the ECC chain, allowing platform members to engage in liquidity mining. Of the total BRSK supply, 90% will be allocated for exchanges and 10% for airdrop rewards, while 70% of BVER and BVER-A will be locked in a contract mining pool, with all mining expected to be completed in 450 days. This enables BRSK to form value binding with BVER and BVER-A, supporting a DeFi liquidity mining model.

Since the resurgence of DeFi in 2020, the market has shown strong effects from this financial paradigm, with mainstream investments increasingly venturing into DeFi, providing broader market support. Liquidity mining in DeFi allows users to deposit or borrow specified assets to earn rewards by providing liquidity to the product's funding pool.

We have developed the BRSK liquidity mining protocol based on the ECC chain to establish a funding pool driven by supply and demand changes, calculated through algorithms.

• Asset Supply: Users can lend their assets to other users on a peer-to-peer platform. The protocol aggregates each user’s supply, enhancing liquidity and maintaining the balance of the funding system. Borrowers and lenders can earn rewards (interest) by adhering to their agreements while transacting in circulating cryptocurrencies. The protocol may also adjust and reward users through "liquidation" of balances, which could unlock new business models for the ecosystem.

• Asset Borrowing: The BRSK liquidity mining protocol allows users to borrow from the protocol using one type of token as collateral for use anywhere within the ecosystem. Each currency market has floating interest rates set by market forces, determining borrowing costs based on liquidity and asset value tied to a collateral factor ranging from 0 to 1.

• Interest Rate Model: The protocol does not require negotiations with suppliers or borrowers regarding terms and rates; instead, an interest rate model based on supply and demand dynamics is used. Borrowing rates may be influenced by utilization rates, with the formula: [ U_a = \frac{a\text{ Cash Borrows}}{a\text{ + Borrows}} ] Borrowing interest rates could look like this: [ \text{Borrowing Interest Rate} = 2.5% + U_a \times 20% ] The interest earned by suppliers is implicit and equals the borrowing rate multiplied by the utilization rate.

• Liquidity Incentive Structure: Unlike typical liquidity models, the BRSK liquidity mining protocol relies on an interest rate model for incentives. During times of extreme demand for assets, liquidity (available tokens for withdrawal or borrowing) will decrease, causing interest rates to rise, stimulating supply while curbing borrowing. BRSK lowers entry barriers for smaller investors by enhancing usability, security, and yields.

In the future, BRSK will not only support liquidity mining for BVER and BVER-A but also develop a diverse service ecosystem that includes wealth management, insurance, derivatives, gun pools, and asset mapping to meet comprehensive DeFi user needs.