DXdao and Agave team up for better liquidity mining incentives using Carrot!
Agave uses Carrot.eth to incentivize depositors and grow its lending protocol
Agave 🤝 Carrot: Liquidity Mining 2.0 is here!
DXdao is now partnering with Agave through Carrot. Agave is leveraging Carrot to take advantage of next-generation liquidity mining. Agave is dedicating 250 AGVE and 3,900 STAKE tokens, worth about $80,000 total, to be used in the creation of Carrot KPI tokens for the month of December, helping grow its protocol in an efficient manner. They are looking to scale these rewards throughout 2022.
“The β-Carotene in Carrots improves a project’s farming effectiveness “ — DXdao/Carrot Core Contributor
These Carrot KPI tokens will be distributed to depositors using Agave’s lending platform over a period of 6 months in 6 campaigns of 1 month each from December 2021 through May 2022.
For the first campaign, Agave will use the protocol’s average daily TVL for the last week of December as the metric, viewable as “current market size” in Agave, and is using a payout range of $3 Million to $12 Million TVL.
Carrot KPI Token Details
Agave TVL — For the first month, 100,000 AGVETVL1 carrot tokens will be distributed over the month-long period. The carrot token redemption value is determined in a linear range based on the TVL of the Agave protocol, with the tokens expiring worthless below $3 Million and a full collateral payout above $12 Million TVL. If Agave’s TVL falls within the $3 to $12 million range, a linear sliding scale will determine the payout. You can find the campaign on Carrot.eth.
This product partnership comes as DXdao’s Swapr is providing liquidity rewards to the AGVE/SWPR pair on Swapr on xDai Chain. DXdao is excited to partner with Agave as one of the earliest partner users of Carrot.
The DXdao and Agave teams have been working together over the past couple of months to make sure Carrot can help to achieve the goals that Agave is determined to reach.
“Carrot was the best project on xDAI that allowed us to deploy KPI options in the Agave incentives program. This allows us to optimize our rewards towards specific goals rather than just throw them away.”
— Luigi Lemon, Agave Core Contributor
Given the ease and flexibility of Carrot, Agave will be able to customize target TVL ranges for each month period. As TVL and market conditions change, different conditions can be set for each new period.
Settlement of Agave’s Carrot KPI tokens
Following each period, the final value to resolve the Carrot KPI Token payout will be answered by Reality.Eth, a decentralized oracle. The KPI conditions are extremely versatile and could be almost anything, because Reality.Eth uses crowdsourced knowledge from humans and isn’t constrained by blockchain limitations or gas costs. Currently, DXdao REP holders, a decentralized community, can act as a final arbiter to resolve any disputes with Reality.Eth’s outcome.
If the targeted TVL is reached, Carrot KPI tokens will be redeemable for their maximum value in tokens. Range KPI tokens provide more flexibility, giving a full payout if the top threshold is met, a partial payout if the TVL is within the range, or no payout if the bottom threshold is not met. Upon campaign expiry, Agave as the campaign creator will automatically receive back any non-redeemable collateral deposited into Carrot KPI Tokens.
About Carrot: Carrot grants permissionless access to create community-driven programmable incentives, distributing rewards when set criteria are met.
Through the power of KPI tokens, anyone effectively contributing to a goal can receive a reward directly proportional to their impact. Get real value in exchange for real value.