Ambit USD: Preparing for $AMBT Airdrop Szn

Earlier in February 2024, we announced the launch of our flagship protocol Ambit Finance — along with the Ambit Incentivized Alpha and imminnet $AMBT airdrop.

Today, we wanted to provide further clarity on the Ambit Incentivized Alpha and how we intend to reward users for helping the Ambit ecosystem achieve our long-term objectives of:

• Making $AUSD the de facto yield-enhanced stablecoin utilized across all chains and DeFi apps.
• Creating the conditions necessary for Ambit yield to be the reference rate for the entire crypto space.

Objectives for the Ambit Incentivized Alpha

Per our previous article, we observe that deep liquidity is essential to ensure a functioning lending market on Ambit Finance, which serves as the core of $AUSD. We thus believe that the Ambit Incentivized Alpha and $AMBT will play a crucial role in bootstrapping liquidity on Ambit Finance.

The Ambit Incentivized Alpha seeks to accomplish several objectives:

• Offer Early Access: Provide an early-access version of Ambit USD while collecting product feedback from the community to optimize our products further.
• Bootstrap TVL: Recognizing the role of deep liquidity for a cross-chain stablecoin, we aim to aggressively bootstrap TVL through the Ambit Incentivized Alpha.
• Incentivization with $AMBT: In exchange for providing liquidity to the Ambit ecosystem, we plan to distribute a portion of $AMBT through an airdrop.

Introducing Ambit Points & Leaderboard

As we look to gamify our user experience, Ambit Finance will introduce a points system where users will earn Ambit Points for their activity on Ambit. Our user interface will also feature a new Leaderboard, where the community will be able to track Ambit’s top contributors by Ambit Points and TVL.

Designing the $AMBT Airdrop Campaign via the Ambit Incentivized Alpha

In seeking to utilize $AMBT to achieve the long-term objectives of Ambit, we expect to allocate 5% of $AMBT for airdrops across a number of seasons. Seasons 0 and 1 of the Ambit Finance airdrop will be distributed to the community after the $AMBT TGE, which is expected in Q2 2024. The remainder of $AMBT not allocated to Season 1 will be allocated to the remaining seasons, of which more information will be made public in due time.

Season 0: Awarding Early Adopters

Since our founding in Nov 2022, Ambit has been fortunate to have had a loyal community who have supported us up until our launch. Our community (on Discord, Zealy, and Galxe) have provided us with valuable feedback via our testnet as we’ve built out our Ambit product suite. These users will be entitled to airdrop that will make up a small percentage of the token supply and these users will also have the ability to earn additional Ambit Points in Season 1 and beyond. Periodic snapshots have been taken since testnet launched last year.

Season 1: Bootstrapping Liquidity by Minting AUSD

Ambit Points will be awarded daily to users for their liquidity contributions on Ambit Finance where $100 of liquidity will be worth 1 point per day. Ambit Points will accumulate daily over the course of the season such that $100 of liquidity held for 10 days would be worth 10 Ambit Points. This aims to favor users who provide sticky liquidity over short term airdrop farming. There are some multiplier effects to the Ambit Points that will be discussed further below.

Season 1 is retrospective such that any liquidity provided from the start of the Ambit Incentivized Alpha (on Feb 1) will also accrue Ambit Points. At the close of Season 1, your total Ambit Points relative to other users will determine your share of the airdrop.

Criteria 1: Rewarding TVL contributors for Minting $AUSD

Deep liquidity is essential to ensure a functioning lending market, which serves as the core of $AUSD. Users that deposit liquidity to mint AUSD will be awarded a 1.5x multiplier on their points.

Criteria 2: Rewarding TVL contributors for Building their Portfolio

Users that supply whitelisted assets (i.e. $WBTC, $WETH, $BNB, $CAKE, $USDT, $AUSD) to their portfolio to create a borrowing position will also be entitled to points.

Criteria 3: Rewarding TVL contributors that Borrow

Borrowers drive Ambit Finance’s utilization rate, creating a healthy two-sided lending market — and as such will be rewarded with Ambit Points.

Criteria 4: Rewarding Liquidity Providers for $AUSD Trading Pairs

As with any stablecoin, its true value lies within its utility. In order to encourage deep liquidity for trading via $AUSD, users who supply liquidity to the $AUSD/$USDT pool on PancakeSwap will also be awarded with Ambit Points. As we work with other partners in the ecosystem to expand the utility of AUSD, we will look to also reward those liquidity providers too.

Concluding Thoughts

We’re excited to hear your thoughts on the Ambit Incentivized Alpha and our $AMBT Airdrop Campaign, so please feel free to reach us on Twitter and Discord!