RFC: AIR/aUSD listing with liquidity mining rewards

Altair Governance Proposals
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As the HRMP channel between Altair and Karura will soon be operational, it’s time to take the next step and list AIR/aUSD on Karura Swap!

Listing AIR/aUSD on Karura Swap is the first step to ensure people can trade AIR on a DEX natively on Kusama, increasing community involvement in the ecosystem and token availability. Further pairs will be added subject to community discussion.

To incentivise users to add liquidity to the upcoming AIR/aUSD pool, we propose to allocate a total of 1M AIR from the community treasury to be used as liquidity mining rewards during the first 30days. Acala will further support this initiative by providing some aUSD rewards.

The listing will consist of a 48-hour bootstrapping period during which only new liquidity can be added and no trading is permitted . Following our community’s approval to use the 1M AIR for liquidity mining, a detailed proposal will be posted on the Acala forum.

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Good day Nicolo
Thank you for the info. :eyes::heart_eyes:

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I fully support this proposal. Is there an estimation already on the percentage for liquidity-providers on Karuraswap for the pair AIR/aUSD?

I can imagine it’s related on the total amount of liquidity provided in the pool

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ehi @Tjure07! yes, you can expect a ~50% APR for $100k of total liquidity in the pool (AIR+aUSD), then it will decrease as more liquidity is added

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Thanks. That’s a good APY and it means “the early bird catches the worm”… :wink:

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A poll has been created for this proposal and it can be found here.

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The liquidity mining program for AIR on Karuraswap is going to end in a few days. What happens afterwards? Is it still possible to provide liquidity or is another governance proposal to extend the rewards needed?

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@Tjure07 after the liquidity mining program ends you will still be able to provide liquidity to the AIR-aUSD pool, but you will earn only trading fees (no AIR/KAR rewards on top of that).

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Thanks for the explanation. Is there a plan to prolong the mining program in case the liquidity drops too heavily?
Currently it has a healthy size of around $143K but I assume it will diminish after the program has ended and the rewards stopped

Decentralized liquidity is the backbone of every decentralized project (my 2 Cents)

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The proposal mentions bootstrap rewards will be distributed right after bootstrap finishes, we still have not received them. You have any idea why this is ?

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@Tjure07 there are no plans to extend the liquidity mining program right now. As you pointed out, some liquidity will likely leave the pool after the end of the rewards, we will keep monitoring the state of the liquidity and can propose a new round of incentive if needed.

@Ilhan I checked with Acala team, they will distribute the rewards after the end of the liquidity mining campaign (estimated for today 17 August). Please note that their team is very busy at the moment, so there might be some delay