Tldr; Across has established a set of loyal liquidity providers through its novel reward locking strategy. Now, the protocol should fine-tune the mechanism’s parameters to attract new capital and prepare for cross-chain interoperability’s upcoming growth. Key takeaways: Across adopted a new strategy called reward locking to encourage long-term LP adoption, which successfully…

Benefitting Loyal Liquidity Providers Over Mercenary Farmers — Introduction Most liquidity mining programs today do not encourage and reward long-term supporters of a project. With most protocols, a loyal liquidity provider, who has remained in a pool for a significant period of time and has not sold their token rewards, earns the same APY as a mercenary liquidity provider…

Interest Rate Model vs. Bonding Curve (AMM) Introduction In tradfi, the best market makers are consistent in their pricing and are always able to facilitate a client’s needs. Market makers are responsible for making sure there is both buy and sell liquidity on the market. Good market makers keep their principal…

One Pool Introduction As a former tradfi market maker, there is no better feeling than matching off a buyer and seller. You make two clients happy by netting off their exposure and you pocket a little bit of money for yourself. …

Analyzing The First Implementation by a DAO — The first range token was minted on June 30, 2021, using $UMA as collateral, to raise over $2.6 MM USDC from a small group of DeFi enthusiasts. This inaugural token settled on August 31, 2021. In this article we review the specifications of the token, analyze how the DAO and…

A Case Study Using KPI Options for Balancer’s Liquidity Mining Program on Polygon — Liquidity Mining 2.0 The idea of Liquidity Mining 2.0 was first introduced in a tweet. It involves replacing liquidity mining rewards with call options or KPI options. As mentioned in the tweet, this accomplishes the following: prevent farmers from dumping a project’s token regardless of price incentivize farmers to learn about the protocol…

How To Build A Range Token — In our previous article we introduced range tokens as a new treasury primitive for DAOs to access funds and diversify their treasury. In this article we provide a more technical explanation detailing the payout function and walk through how a range token is constructed and valued. Review From First Article The…

UMA Helps DAOs Utilize and Leverage Their Assets — UMA’s flexible and secure infrastructure enables DAOs (decentralized autonomous organizations) to build custom tools to drive their community and manage their treasury. DAOs are now using KPI options to incentivize a desired activity or behavior as illustrated by Badger Dao’s Digg Options and Aragon’s KPI Options. Idle tokens in large…

TL;DR — Uniswap v3 will improve capital efficiency and liquidity for synthetic tokens built on the UMA infrastructure. The defining feature of this upgrade is “concentrated liquidity” which grants individual liquidity providers more control over how they provide liquidity. We outline in this article at a high level how Uniswap…