Main navigation

First Cardano (ADA) DEX MuesliSwap Pioneers Organic APR Concept

Wed, 12/07/2022 - 15:59
article image
Vladislav Sopov
MuesliSwap DeFi protocol introduces entirely new yield farming mechanism: the larger the pool is, the higher APY it offers to investors
First Cardano (ADA) DEX MuesliSwap Pioneers Organic APR Concept
Cover image via
Read U.TODAY on
Google News

First-ever decentralized cryptocurrency exchange (DEX) on Cardano and Milkomeda platforms, MuesliSwap, proposes a new concept to make yield farming more attractive and sustainable in a bearish market.

MuesliSwap unveils Organic APR: Yield rates grow together with number of stakers

In an announcement shared by the MuesliSwap team on Dec. 6, 2022, the concept of Organic APR was unveiled to community enthusiasts. In general, it allows the APR to grow with the growing number of people contributing to the pool.

Per the statement, the new concept is set to address the problem of fair yield distribution. In the vast majority of DEXes, the APR for early birds drops as more and more DeFi enthusiasts join this or that pool.

As such, DeFi yields are vulnerable to inflation processes so that the earliest members of the yield farming processes have no incentive to invite the next generation of users.

To adress this disrepancy, MuesliSwap proposes the concept of "Organic APR" designed to increase APY rates together with the increased number of stakers. For instance, as a pool reaches 500,000 ADA in TVL, its stakers can enjoy 7.3% APR. If the pool's TVL scales by 10x, the APY also spikes to 73%.

"Emission is capped": MuesliSwap team addresses concerns

While the majority of MuesliSwap enthusiasts appreciated the new concept, some of them were skeptical and opined that the full scheme would drain LP token reserves.

To address this controversy, MuesliSwap developers made it clear that the total emission level will be limited:

More participation = faster drain. But emission is capped. The maximum emission will never be exceeded and can give a minimum (!) duration for the yield farming. Transparently displaying the remaining reserves + giving an estimate based on the current APR could be another option.

As covered by U.Today previously, after the Vasil hard fork was activated, major DeFis on Cardano (ADA) registered an inflow of new users.

Cardano DEX Sees 788% Growth in User Activity Post-Vasil: Details

MuesliSwap, being the flagship protocol of the segment, witnessed 788% growth in user count in a matter of weeks alone.

article image
About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (, Monoreto, Attic Lab etc.)