Liquidity incentives redefined — Olympus Pro and UMA Options
DeFi moves faster than everything before.
Since early 2020, the number of DeFi protocols have skyrocketed, attracting more than US$222B of liquidity across Ethereum, Solana, Polygon, Binance Smart Chain, Fantom, Avalanche, Terra, Celo and more.
DeFi OG projects like Aave, MakerDAO, Compound and Yearn pioneered the foundation of what DeFi is today with use cases for crypto assets like lending, borrowing, leverage, yield farming and vaults.
Compound was among the first protocols to launch the highly popular liquidity mining program with $COMP rewards to bootstrap its protocol in its early stages; since then, almost every new DeFi project introduced a similar form of liquidity mining program to attract liquidity.
The StakingRewards contract by Synthetix powers most of the liquidity mining programs that you see out there.
Liquidity mining explained
Liquidity mining is described as a way for protocols to incentivise liquidity (albeit in the short term) by giving out the protocol governance tokens as rewards to liquidity providers in…
