Announcing the Acala LSTFi Season Liquidity Mining Program
In an exciting move to kick off the Acala 2.0 Exodus Upgrade and celebrate the launch of the LSTFi-centered Universal Asset Hub, we are thrilled to introduce our liquidity mining program. This program is designed to empower participants, providing them with the opportunity to receive substantial rewards, including up to 20 million ACA per month in ACA staking, boosted LCDOT and DOT staking via the Euphrates DApp, as well as participation in select liquidity pairs on Acala Swap and various ecosystem DApps.
ACA Staking:
At the heart of this program is the aim to align stakeholders, Acala ecosystem participants, protocol functionalities, network infrastructures, ecosystem growth, and ACA utility within the Acala Network. By doing so, we seek to optimize network growth and sustainability while enhancing ACA’s role as a fundamental utility.
- ACA Target APR: We’re setting a target annual percentage rate (APR) of 10% for ACA staking.
- Staking Rate: Participants can enjoy staking rewards with a rate ranging from 30% to 50%.
Euphrates Liquidity DApp
Euphrates is emerging as a key platform within the Acala ecosystem, offering stakers and liquidity providers of Liquid Staking Tokens (LSTs) the opportunity to earn boosted rewards. Participants can claim ACA tokens as well as rewards from participating project tokens with minimal effort. Euphrates V1 will accept LCDOT and DOT deposits for DOT-based LST pools, including tokens like tDOT and LDOT. Notably, LCDOT in Euphrates will be automatically converted into DOT after the Acala lease period concludes and staked into tDOT or LDOT, ensuring users won’t miss out on staking rewards.
- LCDOT Staking Target Launch APR: A target launch APR of 35–55% is set for LCDOT staking (excluding DOT staking rewards).
- DOT Staking Target Launch APR: DOT stakers can look forward to a target launch APR ranging from 26% to 31%, which includes staking rewards.
Liquidity Pairs on Acala Swap
We understand the importance of fostering liquidity within the Acala ecosystem. To achieve this, we’re introducing initial long-term incentivized liquidity pools on Acala Swap, powered by ACA.
- ACA-USDC Pool: Participants in this pool can expect a target APR ranging from 10% to 16%, with a liquidity target of $5–10 million.
- aSEED-LDOT: This liquidity pool aims to offer a target APR of 7–9% with a liquidity target of $500k-700k.
- LDOT-USDC: With a target APR of 10–13% and a liquidity target of $2–3 million, this pool seeks to provide enticing opportunities for liquidity providers.
What is LCDOT, LDOT & tDOT?
LCDOT, or Liquid Crowdloan DOT in the Acala Protocol, mirrors 1:1 with locked DOT assets, scheduled to be unlocked at block 17856000 (~Oct. 24th). LCDOT is stakeable on the Euphrates DApp. Users can choose to convert it into either LDOT or tDOT or redeem it as DOT, providing versatile options.
LDOT is an L-Token from the Homa Protocol. L-Tokens represent a unique tokenized staked asset designed to enhance fungibility and liquidity within the blockchain ecosystem. LDOT harnesses the derivative value of the underlying staking asset, thereby powering a diverse range of applications while maintaining the overall network’s security. Read more about L-Tokens here.
tDOT is from the Taiga Protocol. Liquidity providers within the DOT market of Taiga Protocol receive tDOT instead of traditional LP shares. The value of tDOT is directly tied to the underlying assets in the DOT Stable Swap, ensuring a dynamic and responsive collateralization mechanism. Read more about tDOT here.
Ongoing Monitoring & Adjustment
We’re committed to ensuring the success of this liquidity mining program. To this end, we will continuously monitor targets and liquidity levels. If necessary, we will propose adjustments to incentives in response to market and liquidity conditions. As our ecosystem evolves and new projects and liquidity pairs emerge on Acala, we will explore opportunities to extend this program to support them effectively.
Community Driven
To solidify our commitment to community-driven decision-making, we initiated a sentiment vote that concluded on September 16th to approve the general direction of the liquidity mining program. Specific details, such as the amount of incentives to be deployed on-chain for ACA staking, boosted LCDOT and DOT staking via Euphrates DApp, and participation in select liquidity pairs on Acala Swap and ecosystem DApps, will be determined via on-chain governance in separate proposals.
Stay tuned for updates, and let’s embark on this exciting journey together as we pave the way for a more robust and vibrant Acala ecosystem.
