Dual Rewards, liquidity mining rewards offered by both token project and Bancor, are now live on 3 pools: Arable Protocol (ACRE), Crown Capital (CROWN) & LiquidApps (DAPP). Bancor is matching up to 50k BNT on each of these token pools that are offering the following liquidity mining rewards:
- 6,150,000 bnACRE
- 3,749,604 bnCROWN
- 29,997,350 bnDAPP
See details on Etherscan.
What are Dual (Liquidity Mining) Rewards?
In Bancor 3, token projects can incentivise their own communities by providing liquidity mining incentives in their own token. As per the proposal to match liquidity mining rewards with up to 50k BNT per pool, any token project that commited to deploying token rewards by the end of August 2022 was eligible to join the Dual Rewards Program. The Bancor DAO approved to match liquidity mining incentives in dollar value up to 50k BNT at the time of token commitment and distributed over a 24 month schedule.
3 pools: Arable Protocol (ACRE), Crown Capital (CROWN) & LiquidApps (DAPP) are participating in the Dual Rewards program that is going live today.
Benefits of Dual Rewards
For ACRE, CROWN & DAPP LPs, not only can they enjoy the liquidity mining incentives from both the token project and Bancor, but the token rewards are also auto-compounding, which requires no active re-staking and zero gas fees, thanks to the Auto-Compounding Rewards.
At the same time, the token projects can bootstrap liquidity in a sustainable way with an emission schedule of their choosing. Leveraging on the benefits of Auto-Compounding Rewards, rewards are used as trading liquidity from day one to facilitate deeper pools and lower price impact trades. The auto-compounding feature also offers two distinct distribution models: Flat and Exponential Decay Distribution. Token projects can leverage the flexibility of either distribution model to distribute their tokens to their liquidity providers.
The Dual Reward feature, along with the Auto-Compounding Rewards, therefore offers a special benefit to all parties involved: LPs, Bancor and token projects.