We would like to request extending the liquidity mining rewards for the Minswap AADA/ADA LP. To continue incentivizing the healthy liquidity of our native token, Aada Finance will supply additional 225,000 $AADA tokens from the Staking and Governance allocation. That way, the incentive program will extend for another 6 months, starting immediately after the former one concludes.
In the past year, Minswap proved itself to be the Cardano DEX with the highest liquidity, boasting a TVL of nearly $40m (the highest TVL on the blockchain so far). Moreover, collaborating with the project impacted $AADA positively by increasing the TVL from ₳2.81m in September 2022) to ₳3.95m.
Since the current program ends on 7 March, extending the $AADA program it is crucial to minimize the price volatility. Moreover, it will lower the chances of liquidation on V1 using $AADA as collateral. Continuing the incentive will ensure a healthy TVL for the AADA/ADA pair. Ultimately, extending the program will serve as a preparation for the launch of the V2 protocol smart contracts.
Last but not least, the AADA liquidity mining incentive will allow everybody to increase their AADA holdings on top of the MIN rewards. That way, they will support both projects equally by providing much-needed liquidity to Aada’s largest AADA/ADA pool.
Undoubtedly, the Minswap Double Yield farm became one of the strategic incentives for Aada Finance during the protocol’s development. Moreover, adding 225,000 AADA accounts for 0.76% of the total token supply, which is more than reasonable for such a crucial partnership. If approved, the new program will be renewed immediately after the previous one concludes.