External LP Incentives 🔜

External LP Incentives is coming to Carbon!

The external LP Incentives module enables the provision of additional token rewards, granting Liquidity Providers additional yield when providing liquidity to pools on Carbon.

The module is designed in a way that incentives can be provided permissionlessly without collaboration with Carbon developers.

Bootstrapping Incentives

On top of liquidity rewards (from block rewards), to further encourage liquidity provision, additional token incentives can be awarded to liquidity pools, giving users additional yield. These incentives can be enabled through a community proposal on Carbon governance.

Solo Incentives

Chains and protocols can kickstart liqudity for a particular liquidity pool by incentivizing users to supply liquidity. This will typically take the form of specific project tokens.

For example, if a token project supports Carbon, or wishes to incentivize a liquidity pool with their token, they can assign and allocate rewards in their token for the pool of choice.

Multiple Incentives

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

For example, Cosmos Hub and Stride Zone can partner and offer $ATOM and $STRD rewards to encourage users to provide liquidity to the $ATOM/$stATOM liquidity pool, creating more opportunities for cross-chain collaboration.