Dear Lucidao community,
The first Farming Strategy voted/elected by the community (see [FLP#0006]) is coming to an end and this FLP contains a proposal for the next farming strategy for the Lucidao token.
The main purpose of the farm are:
- To maintain liquidity to MATIC/LCD pair on QuickSwap and therefore allow the distribution of more LCD utility tokens, through farming rewards within our growing community.
- As the liquidity grows, outsiders, institutional contributors, and Oracles willing to gain voting power, will be able to purchase higher amounts of LCD tokens from the market without suffering from high slippage.
- A growing liquidity will contribute to the DeFi ecosystem’s confidence in Lucidao and will help Lucidao scale faster.
The Core Team has brokered the following deal with the Quickswap team.
For the next 3 months, Lucidao community members will be able to stake the LCD/MATIC pair of tokens in a Gamma farm on Quickswap; with the following rewards configuration:
• 45,000 LCD per day will be added to the Gamma pool
• 5,000 LCD per day will be added to the Syrup pool: in the Dragon’s Syrup pool, users stake the QUICK token to be rewarded in LCD tokens.
The above rewards will be allocated from the Governance reserve and represent a total of 4.5m LCD tokens distributed over 3 months, this will allow the protocol to provide the rewards for Liquidity Providers participating in the LCD/MATIC pool.
Please note that:
- A requisite to have the above farm activated is to migrate protocol’s owned liquidity from the current V2 farm to a full-range GAMMA liquidity pool
- The 3-month period suggested might be considered short by some community members though it is the first step towards a revamped Token Economics for the Lucidao protocol, the 3-month is therefore a great transitory period towards a longer term liquidity strategy for LCD
The team will always keep an eye on other protocols in order to provide the best farming experience to the Lucidao community.