TL;DR we announce the Yield Farms through which you will be able to mine MIN by Providing Liquidity and the allocation of MIN rewards towards these farms according to a Point System.
With the first phase of Meteor LBE coming to an end soon, many community members have been asking about the structure of our Yield Farming program once it goes live on March 16th. In this short article, we will lay out our plan for the near future, as well as the long term Yield Farming allocation of MIN tokens towards different pairs to empower Liquidity Provision on our DEX.
As we laid out in the Tokenomics page, 60 million MIN tokens or 1.2% total supply for the first month (16th March 2022 to 16th April) will go towards Yield Farming. This means ≈ 2,000,000 MIN rewards to Liquidity Providers daily.
For the allocation of these Yield Farming rewards, we would like to use a Point System. To simplify it, there will be 100 points to be allocated to a set of pools. This means 1 point will equal 1% of the MIN Yield Farming rewards allocated to that pair.
For the first week, the following farms are proposed:
- Lion Farm: MIN/ADA — 50 points. The MIN/ADA pool will have 50 points, meaning 50% of the 2 million daily MIN rewards, or 1 million MIN daily, will be allocated towards those who provide liquidity in the MIN/ADA pair and stake their LP tokens. As a reminder, everyone who provided ADA in the LBE and keeps the purrADA, will be able to exchange the purrADA for ADA/MIN LP tokens shortly and before Yield Farming commences.
- Tiger Farms: PAVIA/ADA, LQ/ADA, MELD/ADA, WMT/ADA, DANA/ADA — 7 points each. Each of these pools will have 7 points, meaning 7% of the 2 million daily MIN rewards, or 140,000 MIN daily, will be allocated towards those who provide liquidity in each of these pairs and stake their LP tokens.
- Cat Farm: CNETA/ADA — 5.5 points. This means 5.5% of the 2 million daily MIN rewards, or 110,000 MIN daily.
- Kitty Farms: AADA/ADA, CLAP/ADA, VYFI/ADA — 3 points. Each of these pools will have 3 points, meaning 3% of the 2 million daily MIN rewards, or 60,000 MIN daily.
- Dog Farm: HOSKY/ADA — 0.5 points. This means 0.5% of the 2 million daily MIN rewards, or 10,000 MIN daily.
We have decided to start with this allocation accounting mainly for expected TVL (Total Value Locked). With the current numbers from the LBE, the MIN/ADA pool will have over 17 million ADA TVL, which justifies its very high initial MIN allocation. As other pools grow, incentives will be adjusted. The farms were selected according to community input in the following Forum Proposal. As mentioned, as soon as one week after the start of Yield Farming, allocations will be subject to change. Every change will be announced to the community.
Governance and the Kitty Farmer Committee
It is extremely important we constantly gather feedback from community members and integrate it adjusting the Points of our farms. That is precisely the intention of our “Kitty Farmer Committee”. Kitty Farmers (also known as “OGs” in our Discord) are some of the most passionate Minswap Community Members, who have been supporting the team from the beginning, providing invaluable feedback and helping other less experienced community members get acquainted with Minswap and DeFi in general.
Kitty Farmers were instrumental in deciding this initial Yield Farming allocation. In addition, during the coming months, the Minswap team will work very closely with the Kitty Farmer Committee on adding/removing farms, adjusting the points of each farm, and further initiatives. It is important to highlight that becoming a Kitty Farmer is not a closed process, it is entirely open and anyone who contributes consistently and valuably to the Minswap protocol in our Discord and Forum will be considered for membership in the Committee.
We hope Cardano DeFi enthusiasts come for the yields, and stay for the Minswap DAO! As Yearn developer Banteg once wrote: in a DAO, when individuals are given both autonomy and agency, magical things start happening 😉
P.S. We sincerely apologize to the HOSKY community for not giving them their deserved 0.69420 points in their farm. For now, it just made the math too complicated.