Reward sinks
Where do emissions go to? What liquidity do we wish to incentivise?
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Where do emissions go to? What liquidity do we wish to incentivise?
Last updated
Was this helpful?
DIKO emissions are carefully crafted to incentivize the right kind of liquidity in the Stacks DeFi ecosystem. From the total amount of weekly emissions, several Reward sinks are chosen to which these new tokens will flow. Initially, the Arkadiko team decides which pools we would like to boost, but after launching, governance will play a key role in deciding weights for Reward sinks.
The current emissions are as follows:
The rationale behind these design choices is to primarily incentivize a liquid swapping pool for STX tokens against our stablecoin USDA. This allows users to exit and enter the ecosystem through a token that has broader acceptance on centralized exchanges. The total amount of liquidity in the STX/USDA will likely be higher than the DIKO/USDA pool, which is why more weight needs to be assigned to it to keep the APR competitive.
Of course, these choices were made pre-launch and pre-value locked. Should we need to adapt, then a simple governance vote can assign new weights to the reward sinks.
