Proposal 002 - Add AADA/ADA Liquidity mining rewards!

Proposal 002: Add AADA/ADA Liquidity Mining Rewards

Abstract

Aada Finance is one of the Cardano pioneers and among the first protocols to establish a close partnership with SundaeSwap. In essence, the platform aims to play a significant part in developing the native DeFi landscape. Adding AADA/ADA liquidity mining rewards is one of the stepping stones to the healthy growth of both projects.

Introduction

As the official DEX for Cardano, SundaeSwap is the ideal launchpad for providing AADA/ADA liquidity mining rewards in AADA. The incentives will benefit both communities as the liquidity pair will give an entirely new use case. As a result, the LP rewards will effectively keep all users involved in both projects. Aada.finance will provide 1% or 295k of AADA tokens from their supply for AADA/ADA pair farming rewards, rewards would be distributed in a period of 5 months from the beginning of farming, rewards would be claimable every month.

Overview of Aada Finance

In essence, Aada Finance is a crypto assets lending protocol on the Cardano blockchain. The platform introduces an innovative NFT-bond strategy to hold lender and borrower relationships in the form of an NFT. The non-fungible token is redeemable and fully transferable, giving both sides new use cases. Some of these include multi-hedging and claiming loans by third parties. The entire process happens via a lending pool controlled by a smart contract.

What is AADA?

AADA is the governance and utility token for the Aada Finance protocol. Its primary purpose is to give its holders the right to vote on various improvement proposals or stakes on the platform. Alternatively, users can use their AADA tokens to participate in liquidity mining programs. That way, they can help decentralise the token allocation and ensure fair distribution. Ultimately, they will likely receive a higher voting weight for being active supporters of the protocol.

Motivation

Most aspects of the AADA/ADA liquidity mining pair have to do with the standard liquidity mining benefits. Still, they closely correlate with the principle of fair and progressive decentralisation of both platforms. Moreover, the act will open up many other opportunities before the Cardano community.

Increase of TVL for SundaeSwap

Undoubtedly, providing liquidity is one of the primary purposes of every DEX. As the holder of more than 95% of the blockchain TVL, SundaeSwap will significantly benefit from collaborating with a fellow protocol. Ultimately, the influx of AADA will help the DEX retain its reputation as the go-to place for trading native assets.

1% of the total supply, 295K AADA, will be allocated to this program. 1.9K AADA will be emitted daily for 5 months, and can be harvested monthly.

Involvement in both projects

Another great incentive to add the liquidity mining pair is the users’ involvement. Indeed, the program is the perfect way to nurture trust in both projects’ communities. Moreover, providing liquidity rewards for a legitimate project like Aada Finance will further increase the faith of the SundaeSwap community.

A win-win situation

Last but not least, the partnership between Aada Finance and SundaeSwap will be as a win-win situation for both users and platforms. In this regard, liquidity providers will be directly involved by taking part in the fair distribution of the native tokens. In turn, they will receive rewards while both protocols accumulate the desired liquidity for seamless operation.

Conclusion

Adding AADA/ADA liquidity mining rewards in AADA will benefit both projects. What’s more, it will give liquidity providers a fair incentive that will provide a good use case for their service. Ultimately, the opportunity will bond the two project communities, effectively increasing Aada Finance and SundaeSwap’s exposure and adoption.

  • For
  • Against

0 voters

Let’s go Aada Finance!

21 Likes

i support this proposal

13 Likes

LFG :rocket::rocket::rocket: AADA Finance is the future.

8 Likes

We need this, lets go.

7 Likes

Go AADA finance !!!

7 Likes

Adding AADA/ADA and other liquidity pools to participate of the SS rewards increases decentralisation of SS and by extension Cardano ecosystem.

9 Likes

AADA Finance, just like SundaeSwap, is such a great project!

7 Likes

hopefully to start after aada ispo’s are distributed? not that i wouldnt just swap ada to create the lp… but u know what im sayin.

3 Likes

Let’s get this started!

5 Likes

A standout project!!

3 Likes

Would rewards count if already providing liquidity or would one have to add again?

2 Likes

Beautiful. Just did my part.

3 Likes

Just got my vote in, loving the discourse forums

3 Likes

Full Support here this is a good project and should get the support of the community

3 Likes

Yes, finally a proposal to address this.

5 Likes

AADA all the way. One of my best projects on the Cardano Ecosystem.

4 Likes

If the proposal passes, you would just need to stake your LP tokens into a ADA/AADA farm. It’s the same process as yield farming for the other three incentivized pairs.

7 Likes

Let’s go baby!! AADA

4 Likes

Woohoo AADA finance!!!

3 Likes