The Ergo ecosystem, known for its innovative approach to decentralized finance (DeFi), offers numerous opportunities for users to earn rewards not only through on-chain activities but also through off-chain mechanisms. This guide explores how participants can leverage off-chain earnings through roles such as watchers, oracles, and bots, contributing to the ecosystem’s health while securing passive income.
Watchers are integral to Rosen Bridge, serving as cross-chain oracles. They observe and report deposit events on their network to Ergo, contributing to the network’s security and expansion.
The following data represents an example of the reward distribution for a single watcher on the Rosen network within the period from January 22, 2024, to February 3, 2024. The actual rewards can vary based on the traffic on the bridge.
Please note that these figures are subject to change and depend on the actual bridge traffic. The more traffic the bridge has, the higher the potential rewards for the watcher.
Oracles play a pivotal role in DeFi by providing external data (e.g., price feeds) to smart contracts. Ergo’s ecosystem utilizes oracles for various applications, including stablecoins and financial instruments.
To join the existing Gold oracle pool, you will need a Gold Pool Oracle Token. These tokens are periodically made available through auctions, providing a fair and transparent process for potential participants.
Decentralized grid trading is a powerful concept implemented on the Ergo blockchain. It allows for automated trading orders while ensuring users maintain control over their funds. Two notable implementations of this concept are the Off the Grid and Machina Finance projects.
Learn more about grid trading on Investopedia.
Off the Grid is a decentralized application (dApp) that builds on the grid trading contract proposed by kushti. It includes an execution bot/batcher for automating order matching without user interaction.
Explore the project here
Off the Grid provides the following features:
This concept was introduced by @kushti on ergoforum.
“We can do decentralized grid trading on Ergo (which is automatically compatible with existing DEXes, such as Spectrum LP pools and babel fees). Grid trading is a good way to make profits from volatility, and many CEXes offer it.”
Check out the first decentralized grid order transaction on Ergo.
Machina Finance is another project on Ergo that is exploring the concept of grid trading. It is developing a decentralized exchange (DEX) that utilizes grid order contracts.
Explore the project here
Ergo’s ecosystem offers diverse opportunities for off-chain earnings through roles like watchers, oracles, and automated bots. These positions not only provide ways to earn passive income but also contribute significantly to the functionality and security of the Ergo blockchain. By engaging with these opportunities, users can support the decentralized ecosystem while benefiting from its growth and success.