Destination of use for incentives
Folks Finance is eligible to receive 1.25M ALGOs from the Algorand DeFi boost. The intended use of these funds is twofold:
- Incentivizing lending pools through deposit boost
- incentivizing Liquidity Pools paired with gALGO as an asset on DEXs
The full amount of 1.25 million is to be used within the Governance period. Each Governance period will see the repetition of this mechanism.
The rewards will be distributed between the two macro categories (gALGO/liquid governance and Lending) proportionally to their respective contribution in the total TVL. Therefore, they will be divided as follows:
- lending protocol: 28%
- liquidity pools: 72%
Within this category, the strategic intention is:
- incentivizing the USDC and USDt pools
- incentivizing the bootstrapping of new asset pools (e.g. wBNB) by the allocation of a portion of these. This will incentivize deposits in order to speed up their adoption.
Within this category, the strategic intention is:
- incentivizing users to mint gALGO by increasing its utility
- reducing slippage when swapping with gALGO
- incentivizing bridging of new assets into the ecosystem by pairing it with gALGO on DEXs, which could potentially lead to a new listing in Folks Lending Markets
- incentivizing strategic lending pools to boost efficiency for both DEXs and Folks Lending, as it would increase capital efficiency and reduce the effects of impermanent loss
Last modified 1mo ago