What Are Incentive Rewards?
Incentive rewards are additional rewards funded by third parties (protocols, DAOs, or individuals) who want to attract liquidity to specific pools. These rewards stack on top of emission rewards, creating boosted APRs for targeted pools.
Why Incentives Exist:
- New protocols want to bootstrap liquidity for their tokens
- Existing projects want to deepen liquidity during launches or campaigns
- DAOs strategically allocate treasuries to support key trading pairs
- Individuals or groups can incentivize pools they believe in
Benefits for Users:
- Extra rewards beyond standard emissions
- Opportunity to earn multiple token types
- Higher effective APRs on incentivized pools
- Rewards for participating in governance (voting)