Catalyst: Liquidity Incentivization Programs of Graviton
In this article, we present Graviton Catalyst, the platform that bootstraps and sustains the growth of wrapped tokens’ liquidity.
Graviton Catalyst offers primary incentives and sustainable support for wrapped tokens’ liquidity provision. The range of programs under Catalyst is aimed at helping a variety of tokenized blockchain projects, such as protocols, AMMs and farms, to expand onto non-native networks incorporated into Graviton by incentivizing liquidity and extending communities’ attention across ecosystems. The communities of participating projects are invited to get involved in short-term and middle-term programs that incentivize bootstrapping of liquidity for recently emerged wrapped tokens by providing extra LP rewards. Those who enter the newly formed pools as LPs, Graviton rewards with GTON.
Graviton Catalyst hosts farming programs that provide additional rewards for the holders of various LP tokens. Each such LP token supported by Catalyst represents the share in a pool containing any wrapped token and a liquid asset (e.g. WETH, WBNB, or a stablecoin) and, within the Graviton system, it gets assigned with GTON allocation points. The Catalyst programs are limited in time by two to three weeks, and reweighting of the LP rewards’ allocation points occurs every week. For rewarding liquidity providers under the Catalyst program, 12% of the total GTON supply is allocated.
Once a project finishes participating in the Catalyst program, the incentivization for a particular LP token can be reinstated through the Graviton Boost program, in case of a continued interest of the community to promote the project. Boost is intended to maintain liquidity inflows into the LP pools, and thus tokens, which have already gained a critical amount of initial liquidity and have become noticeable on the market. GTON allocations per LP token in Boost programs are expected to be lower than in Catalyst programs, but still sufficiently lucrative and capable of driving growth. The entire allocation of GTON for Boost programs is 8%, and the duration of such programs will vary from one to two months.
This double-sided approach encourages DeFi projects like protocols, AMMs or farms to issue wrapped versions of their tokens and helps with initial liquidity. By doing that, those projects can expand their presence onto other chains, globally enhancing the connectedness of inter-chain DeFi.
In order for an LP token (LP_WrappedToken-NativeToken/popular Stablecoin) to take part in Graviton Catalyst, it should attain a sufficient ranking, represented by the total amount of locked GTONs in support of the project. The projects with the most locked tokens receive the status of a Catalyst program participant and are shown to users in the top projects’ in the corresponding section. A similar but separate ranking exists for the Boost program, where those LP tokens that have already finished participating in Catalyst, can be given additional prolonged incentives. The initial submission of an LP token for participation in ranking for either Catalyst of Boost programs requires locking of 100 GTONs.
Graviton, as a system, provides an infrastructure for wrapping tokens into other networks and incentives for integrating into all incorporated DEXes, for market making, and marketing activities for new communities. By recognizing interchain liquidity incentivization as the most important driving force in tokenomics, Graviton encourages projects and their communities to launch on multiple blockchain networks. The chosen approach that uses regular time-limited programs allows both Graviton and participating DeFi projects to maintain flexibility and seamlessly enter new ecosystems with low friction and expenses. Thanks to this approach, emerging and growing projects can focus on what really matters to them: product development and community building.