Astra DAO is excited to announce the launch of the Liquidity Mining program. This program rewards Uniswap liquidity providers on the Astra DAO platform, and controls the distribution of ASTRA tokens to the wider community.
How Does it Work?
After providing ASTRA liquidity to Uniswap V3, investors can stake their LP tokens to earn bonus ASTRA yield. To participate in Astra DAO’s liquidity mining rewards, investors can add liquidity to any pools found on Astra DAO’s Liquidity Mining Page. This page is located under 'Staking’ -> 'Liquidity Mining.' Upon launch, only select liquidity pools will be available for rewards.
Investors automatically receive liquidity provision tokens (LP tokens) by providing liquidity to a DEX pool. LP tokens can be staked through Astra DAO’s web interface to receive additional ASTRA rewards, provided the pool is eligible for staking.
Liquidity Mining Rewards
Upon launch, Astra DAO will allocate 45% of the ASTRA token supply to Community Rewards, 20% of which are allocated for Liquidity Mining rewards. This accounts for 9% of the total ASTRA token supply. As we can see from Astra DAO’s token allocation chart, there are many rewards to distribute.
Liquidity Mining rewards are distributed through the same logic as iTokens staking rewards. The DAO-managed Treasury can decide to reward specific pools or reward all pools evenly. Astra DAO can also choose to apply additional weighting logic to particular pools.
Astra DAO’s LM rewards distribution follows a time-based system to incentivize long-term liquidity. Rewards are calculated constantly via smart contract, and accrued rewards can be claimed at any time.
Summary
Astra DAO’s Liquidity Mining program incentivizes long-term holding and rewards DAO participation. This represents one of many ways that Astra DAO tokenizes incentives to maintain an autonomous and decentralized index platform.