Introducing the Umee Incentives Module
Hey Umee fam!
This week we bring you great news following the successful voting and passing of governance proposal 91. It recommended the implementation of our new incentives module, a move that will see a significant increase in assets supplied and liquidity that’ll become incredibly beneficial to the Umee community as a whole. Any project is able to add incentives on Umee permissionlessly through Umee governance. Let's take a closer look at how it works and how this could be an amazing opportunity for you + me!
Understanding Umee's Incentives Module
At its core, our incentives module was created to encourage our users to supply assets for others to borrow against. At Umee, we believe in providing as many avenues as possible for our users to benefit using our platform. With this in mind, our incentives module simply rewards users for supplying a much-needed asset to our markets determined by the Umee governance and projects that are interested in sponsoring incentives. Projects will now have the option to give incentives to users through Umee, adding another dimension of user activity on our platform.
On our app, borrow and supply APRs are one of the first things users see. From the beginning, these values have been entirely determined by the market as a whole.
When the amount of an asset is low, Supply APR naturally goes up, encouraging more people to supply it. When the supply is in plenty, this APR value would go down, and so the cycle goes.
Supply and Borrow APRs have always been the way for users to decide on whether or not to supply or borrow any asset. It is a great way to deter destructive mercenary capital from Umee, and it has served to build a community of users who execute responsible DeFi strategies. Now our incentives module hopes to build on this good faith that we’ve worked so hard to build.
The Potential for Custom Supply Strategies
This module implementation introduces another factor to help users decide when to supply assets to the markets: incentives. By providing certain tokens on Umee, users are set to receive rewards for it. This creates an avenue for the community to develop new strategies that best suit choices on what assets to supply, and when.
Much more liquidity
The immediate benefit we hope to see in introducing this incentives module to Umee is the increase in liquidity. With more assets in our pool, the experience for our users thrives, giving users even more opportunities to develop and execute DeFi strategies.
Increased adoption of new assets
With an incentives module in place, we will be better able to encourage the adoption of newer tokens, raising awareness on the up-and-coming protocols as the Cosmos Ecosystem continues to grow. What's more, this implementation is set to attract even more blue-chip assets in the crypto space.
All things considered, this incentives module is effectively a win-win, both for you, our beloved community, and us as an ever-growing DeFi protocol in the Cosmos ecosystem. Are you excited to see this go live? Because we've been looking forward to sharing this with you.
Tell us what you think in our official social channels below!
Best regards,
The Umee Team
Understanding Umee's Incentives Module
At its core, our incentives module was created to encourage our users to supply assets for others to borrow against. At Umee, we believe in providing as many avenues as possible for our users to benefit using our platform. With this in mind, our incentives module simply rewards users for supplying a much-needed asset to our markets determined by the Umee governance and projects that are interested in sponsoring incentives. Projects will now have the option to give incentives to users through Umee, adding another dimension of user activity on our platform.
On our app, borrow and supply APRs are one of the first things users see. From the beginning, these values have been entirely determined by the market as a whole.
When the amount of an asset is low, Supply APR naturally goes up, encouraging more people to supply it. When the supply is in plenty, this APR value would go down, and so the cycle goes.
Supply and Borrow APRs have always been the way for users to decide on whether or not to supply or borrow any asset. It is a great way to deter destructive mercenary capital from Umee, and it has served to build a community of users who execute responsible DeFi strategies. Now our incentives module hopes to build on this good faith that we’ve worked so hard to build.
The Potential for Custom Supply Strategies
This module implementation introduces another factor to help users decide when to supply assets to the markets: incentives. By providing certain tokens on Umee, users are set to receive rewards for it. This creates an avenue for the community to develop new strategies that best suit choices on what assets to supply, and when.
Much more liquidity
The immediate benefit we hope to see in introducing this incentives module to Umee is the increase in liquidity. With more assets in our pool, the experience for our users thrives, giving users even more opportunities to develop and execute DeFi strategies.
Increased adoption of new assets
With an incentives module in place, we will be better able to encourage the adoption of newer tokens, raising awareness on the up-and-coming protocols as the Cosmos Ecosystem continues to grow. What's more, this implementation is set to attract even more blue-chip assets in the crypto space.
All things considered, this incentives module is effectively a win-win, both for you, our beloved community, and us as an ever-growing DeFi protocol in the Cosmos ecosystem. Are you excited to see this go live? Because we've been looking forward to sharing this with you.
Tell us what you think in our official social channels below!
Best regards,
The Umee Team