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How does $POP! benefit projects?
POP! stands for Proof-of-Partnership. It& #39;s a first-of-its-kind project which enables projects to create Mutual Liquidity Pools.
The success of POP depends on partners joining to create MLPs, so let& #39;s see what benefits POP brings to partners
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POP! stands for Proof-of-Partnership. It& #39;s a first-of-its-kind project which enables projects to create Mutual Liquidity Pools.
The success of POP depends on partners joining to create MLPs, so let& #39;s see what benefits POP brings to partners
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First - what is a Mutual Liquidity Pool? https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤝" title="Handschlag" aria-label="Emoji: Handschlag">
A Mutual Liquidity Pool allows two projects to partner together by locking their tokens together in a pool. Communities from both projects can provide single-sided liquidity to the pool and farm $POP.
So how does POP benefit projects?
A Mutual Liquidity Pool allows two projects to partner together by locking their tokens together in a pool. Communities from both projects can provide single-sided liquidity to the pool and farm $POP.
So how does POP benefit projects?
1. POP is superior to Liquidity Mining programs
LM is designed to increase liquidity size by locking up tokens and offering token rewards to farmers. However, this increases a project& #39;s circ. supply which is undesirable to token holders, and it risks impermanent loss for farmers
LM is designed to increase liquidity size by locking up tokens and offering token rewards to farmers. However, this increases a project& #39;s circ. supply which is undesirable to token holders, and it risks impermanent loss for farmers
POP allows projects to skip creating their own LM programs. Projects can now join a Mutual Liquidity Pool to increase liquidity.
This saves them time, it means they don& #39;t have to dilute supply since farmers are paid in $POP, and POP has a mechanism to reduce impermanent loss.
This saves them time, it means they don& #39;t have to dilute supply since farmers are paid in $POP, and POP has a mechanism to reduce impermanent loss.
2. POP is superior to staking programs.
Staking programs incentivise holders to lock-up tokens to improve liquidity in exchange for rewards. But these programs require large funding for teams to set up and once again increases a project& #39;s circ. supply through the token rewards.
Staking programs incentivise holders to lock-up tokens to improve liquidity in exchange for rewards. But these programs require large funding for teams to set up and once again increases a project& #39;s circ. supply through the token rewards.
POP& #39;s Mutual Liquidity Pools allow projects to increase liquidity while providing high APY for farmers.
This is far less costly than setting up a staking program, it means the supply isn& #39;t diluted through staking rewards, and the impermanent loss mechanism protects farmers.
This is far less costly than setting up a staking program, it means the supply isn& #39;t diluted through staking rewards, and the impermanent loss mechanism protects farmers.
3. Stronger Communities.
POP& #39;s strengthens the communities of both projects in an MLP by providing them with an opportunity for handsome farming rewards, by allowing members of one community to join the other, and by increasing confidence that the project& #39;s partners are genuine.
POP& #39;s strengthens the communities of both projects in an MLP by providing them with an opportunity for handsome farming rewards, by allowing members of one community to join the other, and by increasing confidence that the project& #39;s partners are genuine.
POP benefits projects in many ways:
- Massively increase their liquidity size
- No longer need Liquidity Mining Programs
- No longer have to pay expenses of staking
- No longer have to dilute supply with rewards
- Reward and grow their communities
- Increase trust in the project
- Massively increase their liquidity size
- No longer need Liquidity Mining Programs
- No longer have to pay expenses of staking
- No longer have to dilute supply with rewards
- Reward and grow their communities
- Increase trust in the project
