Introducing ANT liquidity rewards
We are thrilled to announce Aragon's first foray into ANT liquidity rewards. Following in the footsteps of other great DeFi projects such as Synthetix, that pioneered the concept of liquidity rewards, the Aragon Association has decided to launch our own ANT liquidity rewards program.
A healthy ANT requires deep liquidity pools. Excellent liquidity means that community members can enter larger ANT positions and do so with much smaller slippage. For many, Uniswap is the gateway to ANT and has consistently demonstrated itself as the most popular DEX for ANT community members to trade ANT. We are excited to continue supporting Uniswap while increasing the depth of the ANT/ETH pool on Uniswap to deepen ANT liquidity.
This ANT liquidity rewards program will commence on Wed July 22nd at 3pm UTC. Over a 30 day period, ending August 21st at 3pm UTC, 50,000 ANT will be distributed as rewards to liquidity providers for the ANT/ETH pool on Uniswap V2.
If successful, we expect more Aragon liquidity reward programs to follow across other protocols such as Balancer and other Aragon Network tokens such as ANJ (the work token for Aragon Court) and ARA (the validator token for Aragon Chain, our soon-to-launch blockchain optimized for DAOs). We are particularly keen to test if the rewards program leads to deeper liquidity pools on the ANT/ETH pair on Uniswap V2 as well as depth durability.
How it works
To stake and begin earning ANT liquidity rewards:
- You must first provide liquidity to the ANT/ETH pool on Uniswap V2.
- For providing liquidity you will receive UNI-V2 (UNI) tokens, which represent the tokens you have contributed to the pool. Merely providing liquidity will NOT earn you ANT rewards, you must complete the next step to earn ANT rewards.
- Visit liquidity.aragon.org, with the UNI tokens from the previous step in your address, and enter the amount of UNI tokens you want to stake and earn ANT rewards.
The specific distribution rules will be as follows:
Update: Payouts will need to be collected manually from liquidity.aragon.org
- ANT will be distributed based on each address' percentage of the total UNI staked in the rewards contract. Note: The Aragon Association will not be staking its share of UNI in the rewards contract.
- The amount of ANT rewards paid out are proportional to the balance of each address and time staked.
- ̶P̶a̶y̶o̶u̶t̶s̶ ̶w̶i̶l̶l̶ ̶b̶e̶ ̶m̶a̶d̶e̶ ̶a̶u̶t̶o̶m̶a̶t̶i̶c̶a̶l̶l̶y̶ ̶a̶t̶ ̶t̶h̶e̶ ̶e̶n̶d̶ ̶o̶f̶ ̶t̶h̶e̶ ̶3̶0̶-̶d̶a̶y̶ ̶p̶e̶r̶i̶o̶d̶.̶
- Although deposits are open now, the rewards clock starts ticking on Wed July 22nd at 3pm UTC.
Participate in the rewards program by visiting the ANT liquidity rewards dashboard.
ANT is the native token of the Aragon Network. ANT is used to back work tokens for dedicated network services, and is also a governance token for managing the overall network. Learn more about ANT.
We hope to continue pushing the boundaries of DeFi with liquidity rewards innovation. With the imminent launch of the Aragon Chain testnet, the new blockchain dedicated to DAOs, we expect more liquidity programs to come. Whether you are trading two ERC20 tokens on Ethereum, trading the synthetic equivalents on Aragon Chain or going back and forth over the Aragon Chain-Ethereum bridge in a transaction and gas efficient manner, liquidity is king.
We have been also thinking about governance and voting with proof-of-liquidity tokens. In that system, voters would first need to lock their tokens for some time while providing liquidity to be allowed to vote. We will keep exploring these paths.
Update 2020-07-23: A previous version of this post erroneously stated that ANT will be distributed based on each wallet's percentage of the liquidity in the pool. This has been corrected to note instead that ANT will be distributed based on each address' percentage of the total UNI staked in the rewards contract.
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