Our protocols shall provide real utility and built-in incentive mechanisms to run autonomously even without additional incentives. For example, great liquidity and trading volume shall generate reasonable trading fees to keep both liquidity providers and traders happy. Liquidity Incentive programs shall act as short-term catalysts to accelerate this adoption and achieve this goal faster.
Specifically, the Liquidity Incentive Program is set out to achieve the following
Create Liquidity Virtuous Cycle: better liquidity, better slippage, better trading experience, more fees for LPs who would bring more liquidity to attract more traders
Create Inter-protocol Virtuous Cycle: better liquidity, better stability support for kUSD (as Karura Swap is used for kUSD collateral liquidation), more stablecoin surplus share for LPs who would bring more liquidity
Foster a long-term, sustainable and coherent community ❤️
We implement a Loyalty Bonus mechanism to achieve the following
To avoid hot bags mining and dumping, hence encouraging more sustainable, longer-term farming for the benefit of the protocol and the entire network
To share more rewards for longer-term LPs compared to just vesting
How to Liquidity Mine on Karura Swap
0. Need KSM on Karura
Learn how to cross KSM from Kusama to Karura here.