Bette Chen, co-founder of Karura and Acala DeFi ecosystems, published an important proposal to reshape the rewards design for KSM liquidity providers.
New rewards in KAR for KSM liquidity providers
According to the text of the proposal published by Mrs. Chen on Acala's community forum, a new incentive program may launch for liquidity providers of KSM-based pools.
Here it comes~ 3 proposals in a roll?— Bette Chen ? - Hiring (@bettechentt) August 4, 2021
1. mint $kUSD with KSM starts at block #268,342
2. KSM/kUSD list on #KaruraSwap via Bootstrap soon after
3. Liquidity Provider Incentive Program is full-on: KAR/KSM & KSM/kUSD ?
Get $KSM ready & embrace more chaoshttps://t.co/WwqciIlcR8 pic.twitter.com/FMCgcyya3U
With this proposal, incentivized rewards programs may soon launch for KAR/KSM & KSM/kUSD pool liquidity providers. If passed, a total of 65,000 KAR will be distributed every month between those who staked KAR/KSM LP tokens for KAR/KSM liquidity pools.
The program is expected to run for a year. Also, an additional loyalty bonus of 50 percent is offered to all participants of the newly proposed initiative.
A total of 125,000 KAR tokens may be distributed between stakers of KAR/KSM LP tokens onboarded by KSM/kUSD pools. Thirty percent in extra bonus are offered here. The program is expected to run for six months.
KAR coins may be "retro-airdropped"
Additional rewards in KAR, the core native assets of Karura DeFi hub for Polkadot's "canary network" ("sister chain"), Kusama (KSM), may be airdropped for those who joined liquidity initiatives prior to a certain block.
Although this scheme is not mandated on-chain, Mrs. Chen promotes it as a way to say "thank you" to early adopters and chaos embracers, i.e., the "early birds" in the Kusama and Acala experiments.
In July 2021, Karura launched its pioneeering decentralized exchange (DEX) on Polkadot (DOT) and Kusama (KSM). KSM/KAR became the first pair to be listed on Karura Swap.