Short Summary
We would like to request approval for Double Farm liquidity mining rewards to the Minswap AADA/ADA liquidity pool. To incentivize token holders, Aada Finance will supply 225,000 AADA tokens over 6 months to increase the TVL of the underlying pair.
Motivation
Minswap decentralized exchange has the AADA/ADA pool with the highest TVL. Moreover, the app is people’s favorite place for CNT swaps, making it the largest community-driven DEX on Cardano. Collaborating with other reputable projects will impact Aada’s popularity positively by attracting more token holders. As a result, the incentive will cement the project’s reputation as community-centric and increase confidence in the upcoming V1 app release.
One planned utility for the AADA DAO token is its availability as collateral in the V1 app. In this regard, adding AADA liquidity mining rewards will benefit technically by helping Aada increase the token’s TVL. So far, the TVL of the AADA/ADA pair on Minswap is valued at 2.81M ₳. By introducing the incentive, V1 users will enjoy higher position safety, lower price volatility, and less chance of liquidation.
Last but not least, introducing AADA liquidity mining as an incentive comes after many prior delays. Doing so right at the onset of the V1 protocol launch will serve as a “thank you” to all long-term supporters who put their belief into the project’s development. The Minswap Double Farm program will allow everybody to increase their AADA holdings on top of the MIN rewards. Ultimately, they will support both projects equally by providing much-needed liquidity to Aada’s largest AADA/ADA pool.
Conclusion
Liquidity mining incentives are essential for every lending and borrowing protocol, especially when it comes to its native token. Adding AADA rewards to the AADA/ADA liquidity pool willincrease pool liquidity. Moreover, the program will align with the protocol launch, further attracting new token holders. 225,000 AADA account for 0.76% of the total token supply.
About the voting
The decision regarding the current proposal will be made through on-chain voting. The voting will be carried out on Epoch 357 (from 14th to 19th) with a snapshot of the AADA token holders on 2022-08-10 10:00 UTC
All voters will have one epoch to cast their vote.
- For
- Against
0 voters
FOR