THORSwap Announces New Incentive Pendulum

THORSwap announced today that they will roll out a new incentive pendulum for their $THOR token as well as a 5x boost to single-sided staking.

Why This Is Important

The main goal of this change is to ensure THORSwap's longevity and sustainability.

With the Olympus Pro partnership, THORSwap can now own its own liquidity and adjust the incentive rewards for better long-term alignment with its users.

What Led To This

The $THOR liquidity pool on THORSwap currently sits at $43M of liquidity, making it the 2nd deepest pool on the protocol. However, it only accounts for the 7th highest 24-hour volume at $500k – making the LP inefficient.

New Incentive Pendulum Adjustments

1. 5x increase in single-sided $THOR staking yields, incentivizing staking over LPing (🔱,🔱)
2. Users can get $THOR from Olympus Pro Bonds at a discount, helping THORSwap acquire liquidity
3. Reduce THOR-RUNE LP and farming emissions to a more sustainable level

LP block rewards will gradually reduce over time, while single-sided staking rewards gradually increase over time at a sustainable and healthy level for the protocol.

In Summary

THORSwap's incentive pendulum is the balance between staking rewards and demand for Olympus bonds.

If bond demand is high on Olympus Pro, THORSwap will increase monthly allocation to OHM and reduce LP emissions while keeping yield steady for $THOR stakes.

If bond demand is low, THORSwap will increase single-sided staking APY to encourage bonding as users move to acquire discounted $THOR to stake.

This is the THORSwap game theory at work, THORChads! (🔱,🔱)

For more detailed information, check out the full THORSwap Medium article.