Driving borrowing liquidity by encouraging lending activities

The CDP module allows for additional token incentives to be awarded, giving users additional yield. The incentive module is built such that this can be done permissionlessly without collaboration with Carbon developers.

Carbon aims to be the default money market for all chains on Cosmos.

This is accomplished by easily allowing other protocols to offer liquidity mining rewards in our money market permissionlessly so that they can incentivize their community to borrow and lend.

Bootstrapping Rewards

The CDP module supports liquidity mining rewards, which allows for whitelisted assets to be incentivized for bootstrapping / adoption purposes. These rewards can be enabled through a community proposal on Carbon governance.

Individual Rewards

The CDP module enables chains and protocols to kickstart liquidity by incentivizing users to supply liquidity when borrowing their tokens. This will typically take the form of specific project tokens.

For example, if a token project supports Carbon, or wishes to create a lending/borrowing pool (or single-staking vault) for their token, they can assign and allocate rewards in their token for the borrowing/lending of said token.

Multiple Rewards

Various protocols can partner with each other (and with Carbon) to incentivize multiple communities together.

For example, Cosmos Hub and Osmosis can partner and offer ATOM and OSMO rewards for borrowing and lending ATOM or OSMO on the money market, creating more opportunities for cross-chain collaboration.

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