Community Voting for Lending Pool Incentives
Lending Incentive Allocations
Given that OpenLeverage derives a substantial portion of its trading fees from token pairs, the lending pools that support these trading pairs will need to be incentivized or bootstrapped with a base amount of OLE rewards to drive sustained activity on the platform.
Out of the total rewards for lending:
- 30% of OLE will be allocated to the pools, based on the average borrowed amount across the 21 days before each epoch.
- 30% of OLE will be allocated based on the current TVL, for pools with more than $1,000 TVL, before each epoch starts.
- The remaining 40% of OLE lending rewards will be up for a vote, with voters choosing the pools to be rewarded.
Qualifying for Lending Incentives
In order for a pool to be eligible to receive OLE incentives, it must meet all of the following criteria at the time of snapshot:
- The liquidity on the lending pool must have at least $1,000 in deposits;
- Underlying spot liquidity for the specific pair must be at least $500k on one of the supported DEXs;
- One side of the trading pairs should be in the following currencies: BNB/BUSD/USDT/USDC/KCS/ETH/BTC.
Given that Snapshot only accommodates up to 160 voting options, voting criteria may become more stringent as the protocol continues to evolve and more token markets are added.
Pools that meet the above criteria will be eligible to participate in the voting process to receive a pro-rata share of 40% of OLE designated to voting rewards. Each token pair will be capped at a maximum of 8% of the tokens up for grabs, equal to 3.2% of the total rewards (40% x 8% = 3.2%).
A list of qualified pairs can be found here.
First community voting will start on Monday, October 17 at 12 PM UTC. A Snapshot link will be provided for members to vote for pools they are in favor of.
How to Vote for My Favorite Market
If you want to vote for a market/lending pool that hasn’t been created on OpenLeverage, you will need to:
- Create margin trading and lending markets on our BNB/KCC Network.
- Deposit $1,000 worth of tokens into the lending pool to make the pool eligible for voting.
In the near future, we plan to allocate 10% of OLE lending rewards to bootstrap lending liquidity for trending token pairs (i.e. tokens that have exhibited notable volume and rapid increase in popularity), in real-time voting from our dApp.