The First Wave of Liquidity Mining Ends Positioning Equilibrium Among Top-10 Parachains By TVL And DAU

Our first wave of the farming campaign has come to an end. As you may recall, we announced that 1% of EQ token supply would be committed to it, and the campaign should last 4 months until June 20, or allocation is distributed in full. However, we decided to extend the campaign until today and allocate more EQ tokens on top of the initial allocation to fulfill the interest of our beloved users who have put their funds in the protocol so far.

Now that this threshold has been reached, we are discontinuing the current wave of the campaign as planned. As such, all staked EQ tokens no longer earn additional yield, but they will provide an APR multiplier to all future waves, provided they are still locked in staking by the time a new wave begins. During this wave, we’ve attracted over $2.27M into Equilibrium’s pools, and peaked at 774 daily active accounts while maintaining 200–250 active accounts for the entire campaign duration. This positioned Equilibrium among the top Polkadot parachains by TVL and users.

We want to share our thoughts on future mining campaigns in this article. The initial data for consideration is encouraging: EQ tokenomics has 10% of the token supply set aside for liquidity farming. With 1% spent, this leaves us with another 9% of EQ tokens available for future waves.

This is a decent chunk of tokens that we will deploy and attract more liquidity in the future. But before we continue distributing EQ to the market, we decided to take our time to come up with the best possible strategy for the coming waves of the mining campaign. Given the current market conditions, declined sentiment around Polkadot, and potentially excessive dilution of the circulating token supply, we must be conscious of our campaign mechanics going forward.

Here is the summary of risks to be considered:

• Preliminary running out of resources — we could spend too much and run out of tokens allocated for attracting liquidity
• Token inflation amidst the bear market — new EQ entering the market might not find adequate dynamics in demand
• Overwhelmingly complicated mining mechanics — we feel it’s worthwhile to simplify the terms of the campaign to make them clear to a broader audience

Our next steps:

• Figuring out the most actual products in our product line
• Catering straightforward mechanics to support pools of these products
• Launching a new wave supported by a significant marketing push

As of bullet 1, we consider our liquid DOT staking and EQD the most in-demand products on Polkadot and the leading candidates for further liquidity push. However, we would love to hear the opinion of our community on this matter — please join discussions on our Discord and express your thoughts.

There are plenty of examples of DeFi protocols that faded into obscurity after emitting all of their marketing budgets on attracting mercenary capital. We don’t want Equilibrium to follow in their footsteps. With 9% of the EQ supply available for future farming rewards, Equilibrium will offer competitive yields to users across the entire Polkadot ecosystem. Stay tuned for future campaigns and opportunities to earn more EQ tokens.

About Equilibrium

Equilibrium is a one-stop DeFi platform on Polkadot that allows for high leverage in trading and borrowing digital assets. It combines a full-fledged money market with an orderbook-based DEX. EQ is the native utility token that is used for communal governance of Equilibrium. Dollar-pegged EQD is Equilibrium’s native decentralized stablecoin, collateralized by a weighted basket of assets and used as a universal unit of value within the DeFi ecosystem. eqDOT is a liquid DOT staking wrapper that allows users to participate in DeFi on Equilibrium while earning DOT staking yield.

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