ShapeShift DAO Extends Farming Rewards!

LOS ANGELES, Feb. 22, 2022 /PRNewswire/ -- ShapeShift DAO, a decentralized, non-custodial cryptocurrency platform, has approved the continuation of liquidity mining incentives in the Uniswap FOX/ETH pool, effectively extending and modifying the current liquidity mining rewards. 

The new strategy will maintain liquidity mining rewards near or at current levels for an additional four and a half months while at the same time aggressively increasing the DAO's Olympus Pro bond LP token purchases.

The ShapeShift DAO will continue its rewards in the Uniswap FOX/ETH pool targeting a 75% APR or higher (funded with 13.5 M of FOX). The strategy is an essential role in both ensuring that FOX has a presence on Uniswap and throughout the DeFi ecosystem, as well as expanding the universe of FOX holders. FOX token holders will continue to enjoy farming rewards and can use this helpful guide to learn how to add FOX to a liquidity pool and staking contract.

The two-step strategy will allow the DAO to continue its liquidity mining rewards while also using its ample FOX reserves to begin purchasing its own liquidity via the FOX/ETH Olympus Pro bond. This new paradigm of allowing protocols to hold their own liquidity is significant. It allows projects to maintain liquidity pools without relying on third parties to supply the liquidity. Rewarding third parties for liquidity providing brings associated risk - for instance, increasing the influence of "mercenary" liquidity providers who sell tokens soon after earning rewards.

Specifically, the DAO will fund an initiative over the following four and a half months to purchase FOX/ETH LP tokens via the Olympus Pro bond, targeting $40 million worth of liquidity. In addition to the benefits outlined above, the LP tokens will also serve to diversify the treasury. An increased amount of protocol-controlled-value could also be helpful in severely adverse market conditions since ShapeShift can more directly influence if and when liquidity exits the market.

The FOX/ETH farming program is the DAO's largest expense. Buying the LP bonds will reduce the need for future liquidity mining programs. In addition, the purchased LP tokens could be staked in the ShapeShift farming contract, resulting in the reclamation of up to 90% of the funds spent on liquidity mining.

The advantages for both the DAO and FOX token holders are significant; hence, the community sentiment around this proposal was positive, reaching 4.75M of votes in favour. You can read the full proposal here.

About ShapeShift

Since 2014, ShapeShift has been pioneering self-custody for digital asset trading. The DAO's web and mobile platforms allow users worldwide to safely buy, hold, trade, and interact with digital assets such as Bitcoin and Ethereum.

Learn more at ShapeShift.com

Contact: Pete Coin, [email protected]

SOURCE ShapeShift DAO