Adding Incentives to Pools
Any user can incentivize any pool by following these steps:
Incentivization Process:
- Select Target Pool: Choose which liquidity pool you want to incentivize
- Choose Reward Token: Typically DXLYN or a stablecoin, but could be any token
- Specify Amount: Enter how much of the token you’re contributing
- Confirm Duration: Incentives typically apply to the current or next epoch
- Submit Transaction:
- Wallet prompts for approval of token spend
- Transaction executes with applicable fees
- Tokens are locked in the incentive contract
Post-Incentive State:
- The incentive amount displays in the pool’s “Incentive” column
- All users can see the pool is incentivized
- Voting for that pool becomes more attractive
- APR calculations update to reflect additional rewards
Strategic Incentivization:
- Protocols often incentivize their own token pairs during launches
- Users might incentivize pools where they have large LP positions (to attract votes)
- DAOs coordinate incentive campaigns across multiple epochs
- Incentive amounts can influence voting outcomes significantly