TL;DR We are announcing the Yield Farms through which you can mine MIN by providing liquidity and the allocation of MIN rewards to these farms according to a points system.
With the First With the upcoming phase of Meteor LBE coming to an end, many community members have been asking about the structure of our yield farming program once it goes live March 16th. In this short article, we will lay out our plan for the near future as well as long-term yield farming allocation of MIN tokens to different pairs to strengthen liquidity provision on our DEX.
background
As we outlined on the Tokenomics page, 60 million MIN tokens or 1.2% overall supply for the first month (March 16, 2022 to April 16) goes towards yield farming. This means ≈ 2,000,000 MIN rewards for liquidity providers daily.
We intend to use a points system to award these yield farming awards. To simplify, there will be 100 points assigned to a group of pools. This means that 1 point equals 1% of the MIN Yield Farming rewards assigned to that pair.
allocation
For the first weekthe following companies are suggested:
- Lion Farm: MIN/ADA — 50 points. The MIN/ADA pool will have 50 points, meaning that 50% of the 2M daily MIN rewards or 1M MIN daily will be allocated to those who provide liquidity in the MIN/ADA pair and stake their LP tokens. As a reminder, anyone who has deployed ADA in the LBE and keeps the purrADA can exchange the purrADA for ADA/MIN LP tokens just before yield farming begins.
- Tiger Farms: PAVIA/ADA, LQ/ADA, MELD/ADA, WMT/ADA, DANA/ADA — 7 points each. Each of these pools will have 7 points, meaning that 7% of the 2 million daily MIN rewards or 140,000 MIN daily will be allocated to those who provide liquidity in each of these pairs and wager their LP tokens.
- cat farm: CNETA/ADA — 5.5 points. That means 5.5% of the 2 million daily MIN rewards or 110,000 MIN daily.
- Cat Farms: AADA/ADA, CLAP/ADA, VYFI/ADA — 3 points. Each of these pools has 3 points, which means 3% of the 2 million daily MIN rewards or 60,000 MIN daily.
- dog farm: HOSKY/ADA — 0.5 points. That means 0.5% of the 2 million daily MIN rewards or 10,000 MIN daily.
argumentation
We decided to start with this allocation accounting mainly for the expected TVL (Total Value Locked). With the current figures from the LBE, the MIN/ADA pool will have 17 million ADA TVL, justifying its very high initial MIN allocation. While other pools grow, Incentives are adjusted. Farms were chosen based on community input in the forum suggestion below. As previously mentioned, allocations can change as early as a week after yield farming begins. Any change will be announced to the community.
Governance and the Kitty Farmer Committee
It is extremely important that we constantly collect feedback from community members and integrate it by adjusting the points of our farms. That is exactly our intention “Kitty Farmer Committee”. Kitty Farmers (also known as “OGs” in our Discord) are some of the most passionate members of the minswap community who have supported the team from the start, providing invaluable feedback and helping other less experienced community members learn about minswap and DeFi to familiarize in general.
Kitty Farmers were instrumental in deciding this initial yield farming allocation. In addition, the Minswap team will be working in the coming months very close with the Kitty Farmer Committee on adding/removing farms, adjusting each farm’s score, and other initiatives. It is important to emphasize that becoming a kitty farmer is important not a closed process, it is totally open and everyone who contributes consistently and valuable to the minswap protocol, in our discord And Forum will be considered for membership of the Committee.
What’s next?
We hope Cardano DeFi enthusiasts will come for the returns and stay for the returns Minswap DAO! As Yearn developer Banteg once wrote: In a DAO, when individuals are given both autonomy and agency, magical things start to happen 😉
PS We sincerely apologize to the HOSKY community for not giving them their deserved one 0.69420 points in their farm. Right now, the math just made it too complicated.
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