Something like this would be nice with decentralized exchange... Or is it also for decentralized exchanges?
Guess the incentive program is with tokens,right? 12.6% makes a bit of sense if it's token. It doesn't sound too sustainable though.
In regards to running node all the time, you could make it optional for liquidity providers to lock their funds and let their money work for them while offline. I think stuff this will work best on permissionless/trustless decentralized exchanges with escrow system/smart contract.
It is exactly a permissionless decentralized exchange -
https://jelly.market/ It is for cross-chain atomic swaps - connecting different blockchains.
So you can provide liquidity on the trading pairs that we currently support - BTC-ETH, BTC-DAI, BTC- WBTC, BTC- USDC, ETH- ERC20
You can go and check them all -
https://app.jelly.market/swapFunds are not locked. They are used only on demand. This happens ONLY if there is an active swap and there is a user that has locked the appropriate amount of the token you want to receive against the token you provide.
This is the source code used for Butler -
https://github.com/jelly-swap/jelly-butler-beta