Today aave announced the launch of the V2 Liquidity Mining (LM) program, which will run for three months. The program ends on July 15th. The developers then agree to terminate, continue or adapt the LM program.
Due to the high gas costs and lack of motivation to migrate, Aave decided to enable the v2 liquidity reduction program to encourage liquidity providers and borrowers to migrate to an optimized version so that they can receive liquidity premiums and participate in log management.
The liquidity mining program underwent a governance vote on April 24th. The liquidity mining incentives introduced for Aave’s V2 protocol will also successfully motivate users to explore the deployment of Aave’s polygon-based Layer 2 solution.
Aave will distribute 2,200 Staked AAVE (stkAAVE) per day in proportion to the dollar value of lending activity in the market, which equates to approximately $ 1 million in rewards distributed daily to lenders and borrowers.
As per the graph above, most of the rewards in the USDC and USDT markets are disrupted, 41.56% and 25.87%, respectively. According to CoinmarketcapUSDT and USDC dominate first and second place among stablecoins with market capitalizations of $ 50,298,636,831 and $ 11,241,573,741, respectively.
Aave itself is the third largest DeFi protocol with a total locked down value of $ 7.52 billion based on DeFi Pulse data.
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