The Tangle Ecosystem Association has unveiled a $1 million incentive program on layer-2 blockchain ShimmerEVM aimed at bootstrapping growth and decentralize finance (DeFi) activity. The rewards will be distributed in Shimmer's SMR token to liquidity providers who direct external assets into the ecosystem's nascent DeFi platforms over its new cross-chain bridge.
TLDR
- $1 million in Shimmer (SMR) tokens allocated to incentivize use of new Shimmer Bridge
- Administered via Web3 protocol Tide to track TVL contributions across Shimmer dApps
- Participants must bridge over $1,000 in assets and provide liquidity for ≥30 days
- Rewards vest over 6 weeks after 45-day tracking period ends on March 16
- Referral program gives 5% of friends' rewards for successful invites
Dubbed the "Shimmer Liquidity Mining $1M Airdrop," the campaign was devised by the Shimmer Growth Committee, which includes Tangle Ecosystem representatives and community members. It allocates over 1.5% of the total SMR token supply for incentives valued at over $1 million based on the current SMR price.
The rewards will be administered and tracked using Web3 incentive protocol Tide Finance. Tide integrates with Shimmer dApps to monitor contributor balances and reward liquidity providers and token holders. Its points-based system will tier rewards according to the size of participants' contributions.
How to Participate
To participate in the liquidity mining program, users first need to bridge over $1,000 worth of assets into ShimmerEVM using the newly launched Shimmer Bridge powered by LayerZero. Eligible assets include wrapped versions of coins like WETH, WBTC, USDC, and stablecoins from major Layer 1 chains.
After bridging in assets, participants must provide liquidity to decentralized apps integrated with Tide Finance on ShimmerEVM. Providing liquidity - i.e. adding funds to liquidity pools on DEXs and lending platforms - is key for bootstrapping adoption and growth. Participants can also purchase native SMR tokens or ecosystem tokens listed on Tide's campaign page.
The assets supplied to these dApps and platforms need to remain locked for a minimum of 30 days. However, the longer participants lock their liquidity past the first month, the higher their rewards will be, with a 1% daily increase.
Following registration on Tide's campaign page, participants will receive a non-fungible token (NFT) to verify their eligibility status. The NFT tracks their wallet's activity throughout the 45-day competition period, which runs from January 31 to March 16, 2024.
Once the campaign concludes, rewards will be claimable on Tide Finance and vest over a 6-week period. Participants receive higher rewards based on the tier level achieved by their contribution amount.
More Than Just Rewards
While the $1 million in prizes will likely attract participants, Shimmer's Growth Committee views this liquidity mining initiative as more than just an incentives campaign. It signifies their dedication to collaborating with community members and ecosystem projects to continue advancing the ShimmerEVM vision.
As part of this collaborative effort, participants who actively contribute to the program can also generate a referral code on Tide Finance and invite friends to take part as well. Any friends onboarded via referrals who successfully participate will net the referrer a 5% portion of their earned rewards.
By jumpstarting development activity on ShimmerEVM, the Shimmer Growth Committee aims to showcase the potential of the ecosystem and Layer 2 blockchain technology to supporters and observers across the wider crypto industry.
The major incentive program may be just the first of many cross-community campaigns to come as ShimmerEVM charts its roadmap for the year ahead.
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