With the Aragon Network DAO launch coming soon, ease of access to ANT has never been more important. A month ago, we announced the first ANT liquidity rewards program on Uniswap to improve ANT liquidity depth on decentralized exchanges.
As we can see in the chart below, the program has been a smashing success.
But we have also listened to ANT holders’ feedback, and today we are happy to announce an improved second round of the liquidity rewards program.
First, the new program will run on Balancer. Balancer allows for pools with different weights, minimizing impermanent loss. Because of that, we have picked an 80% ANT / 20% ETH pool for the rewards.
Second, you won’t need to interact with any smart contract other than Balancer. Gas prices on Ethereum mainnet are quite expensive, so we want to minimize on-chain interactions for ANT holders' benefit. The rewards calculations will happen off-chain.
Third, Balancer is still running their own liquidity rewards, which means that ANT holders participating in Aragon’s liquidity program will also get BAL. Keep in mind that the BAL distribution mechanism is outside our control and may change.
This ANT liquidity rewards program will commence on Tuesday, August 25, at 3pm UTC. Over 28 days, ending Tuesday, September 22, at 3pm UTC, 25,000 ANT (~$120k as of today) will be distributed as rewards to liquidity providers of this 80 ANT/ 20 ETH pool on Balancer.
The specific distribution rules will be as follows:
ANT will be distributed based on each address' percentage of the total BPT inside that pool. Liquidity providers will be getting BAL rewards directly. Note: The Aragon Association will not receive ANT rewards based on its liquidity in that pool.
The amount of ANT rewards paid out are proportional to the balance of each address and time staked.
Payouts will be made on Tuesdays ( ̶w̶e̶e̶k̶l̶y̶ Bi-weekly). Update: Payouts will be sent bi-weekly rather than weekly.
Although deposits are open now, the rewards clock starts ticking on Tuesday, August 25, at 3pm UTC and ends on Tuesday, September 22, at 3pm UTC (28 days).
We continue experimenting with governance and voting with proof-of-liquidity tokens. We are also thinking about time-lock reward mechanisms to incentivize long-term liquidity placements further. It’s only the beginning!
Update regarding theprevious liquidity rewards program on Uniswapthat ran from July 22 to August 21: It was stated that rewards would be paid automatically, however, liquidity providers must collect their rewards manually from liquidity.aragon.org. This does not apply to the second round of Balancer rewards which starts August 25 and will be paid automatically.