How to Earn Ambient Points

Ambient is distributing points weekly to reward users for their contributions and interactions on the exchange. Users can earn points by swapping on the exchange and providing liquidity, although the calculation method for points has not been released to prevent gamification of the system. 

Key Takeaways

• Ambient Finance is a decentralized exchange where users can trade cryptocurrencies, provide liquidity, and perform limit orders.

• In a seed funding round held in July 2023, the exchange raised $6.5 million with the support of BlockTower Capital, Jane Street, Circle, and more.

• Users can now earn Ambient Points by interacting with the platform through swaps and providing liquidity.

Ambient Finance, formerly known as CrocSwap, is a decentralized exchange (DEX) where users can trade cryptocurrencies. The protocol utilizes two-sided Automated Market Makers (AMMs) to combine two different types of liquidity pools. There are concentrated liquidity pools where liquidity providers are able to specify a price range. On the other hand, the Ambient liquidity pools let users provide liquidity across the entire price range. By having both types of liquidity pools, Ambient can provide efficient and flexible trading opportunities. 

The exchange also maintains an efficient smart contract design by running its DEX within a single smart contract instead of having separate smart contracts for each pool.  This design allows the exchange to be more gas-efficient than other DEXs. On top of gas-efficiency, Ambient also has “gasless” transactions where users can swap tokens without needing to hold ETH in their wallets for gas fees. This is done through EIP-712 off-chain signatures where a third-party, known as the relayer, will execute the transaction in exchange for a small tip in the swapped token. 

Users can also maximize returns by taking advantage of Ambient’s dynamically adjusted pool fees which are based on market conditions and demand for liquidity. Meanwhile, fees accumulated by concentrated liquidity provider (LP) positions are automatically reinvested back into the pool, allowing users to earn compounded returns. The exchange also protects ordinary LP positions by implementing minimum Time-To-Live parameters on concentrated liquidity positions. This ensures that LP positions are active for a minimum period to discourage those looking to create and quickly withdraw positions to earn high fees. 

Ambient has successfully raised a total of $6.5 million in a seed funding round in July 2023. It was led by BlockTower Capital and received support from Jane Street, Circle, Tensai Capital, Naval, and more. The  capital raised in this round will be utilized to grow the team as well as research and development.

Those who are interested in Ambient can now earn points by interacting with the exchange. Ambient Points are designed to quantify and recognize users for their contributions and are distributed weekly. Points are earned by making swaps and providing liquidity. However, the team has chosen not to reveal the calculation method for points in order to prevent gamification of the system. Season 1 of Ambient Points is now live, making it a great time to start interacting with the protocol!

However, do note that no specific details on a token airdrop has been announced by the Ambient team. Therefore, proceeding with the steps below to earn Ambient Points does not guarantee an airdrop allocation.

Step 1: Connect Your Wallet

Head to https://ambient.finance/ and Connect Wallet. 

There are a few wallets you can choose from to connect. In this guide, we will be using the MetaMask wallet.

There are three networks that you can choose from. Switching to either Scroll or Blast can earn you more points if you are also farming those networks. 

In this guide, we will be using the Scroll network. After selecting the network, confirm the interaction in your wallet.

Step 2: Swap

In the top menu, head over to Swap. Here you can choose the tokens you want to swap. In this guide, we are swapping from ETH to USDC. 

After you Confirm the swap, you will need to Submit Swap and confirm the transaction in your wallet.

Step 3: Trade 

In the same top menu, move over to Trade and make sure the right panel indicates that you are performing a limit order. With limit orders, you can set the price at which you want your order to go through. For example, if we set the price at $3,819.94, our order will only be fulfilled once the price of Ethereum hits $3,819.94. 

Review your limit order before submitting it and confirming the transaction in your wallet.

Step 4: Provide Liquidity

Go to Pool either in the top menu or within the transaction panel where it is next to Limit. With this transaction, you will be providing concentrated liquidity to the pool. 

In this guide, we will provide both ETH and USDT with a 10% price range. The price range indicates the minimum and maximum price of ETH that our position will tolerate. Once ETH hits the maximum price, it will be sold for USDT, but if it hits the minimum price, then USDT will be sold for more ETH. In both scenarios, the position will be removed and needs to be repositioned. Do note that this scenario uses a stablecoin and therefore is different from having two market dependent tokens.

You are able to set the range between 5% to 50% or select Ambient which follows a full market price range while allowing for fees to be auto-compounded without manual intervention.

Once you have set your order, Approve and Confirm it then sign the transaction in your wallet.

Step 5: Check Your Points

In the top bar, you can check your Points to see your level and amount of points you have earned. You can also View Details or View FAQ for more information.

Conclusion

Ambient Finance is a decentralized exchange that leverages its market data and enhances security, efficiency, and transparency through various methods. Users can provide liquidity and utilize earning opportunities through various features such as limit orders. Ambient is now recognizing user contribution by distributing Ambient Points to those who provide liquidity and swap on the platform.