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Avalanche Rolls Out $180M DeFi Incentive Program With Aave and Curve

cryptoknowmics.com 19 August 2021 00:30, UTC

Smart contracts platform Avalanche is rolling out a $180 million “liquidity mining incentive program” to scale its decentralized finance (DeFi) ecosystem. In a Wednesday announcement, the Avalanche Foundation said that its new program, titled Avalanche Rush, would bring the leading DeFi protocols to the platform -- starting with Aave and Curve.

Avalanche Foundation Announces $180 Million DeFi Incentive Program

Avalanche said the first phase of its initiative will be launched with AVAX -- the platform’s native token -- as a liquidity mining incentive for Aave and Curve users over three months. The platform’s foundation has earmarked $20 million AVAX for Aave users and $7 million AVAX for Curve users. Additional allocations are planned for the next phase of the program in the coming months.

“This is an allocation for effectively a fund that will be disbursed over time, not all of that amount has been allocated,” Luigi D’Onorio DeMeo, a director at Ava Labs, stated. “This is really our effort to showcase what Avalanche can do as a Layer 1 technology and bring over some of the largest protocols that exist.”

Apart from Aave and Curve, Avalanche has joined hands with BENQi, a liquidity protocol native to Avalanche with which it recently introduced a $3 million liquidity mining initiative. Additionally, Stake DAO teamed up with Avalanche to build yield generating strategies leveraging the upcoming deployments of Aave and Curve.

Established in 2020, Avalanche touts itself as the best place for Ethereum defectors due to its high throughput and lower costs. Unlike Ethereum, which is a single blockchain network, Avalanche has multiple chains responsible for different functions.

AVAX Token Responds Positively to New Scheme

Following the announcement, the AVAX token surged 26.9% within 24 hours and reached as high as $30.06. According to CoinGecko data, this is still far lower than its all-time high of $59 from February.

Nevertheless, the upward swing signals positive sentiment for the asset, which has recently benefitted from back-to-back developments at its parent organization. Not long ago, Avalanche introduced the Avalanche Bridge (AB) project that allows asset transfers between different blockchains.

With the launch of Avalanche Rush, the platform expects strong liquidity incentives and a seamless user experience for DeFi applications joining its ecosystem.

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