Aerodrome - Sustainable Liquidity Growth Campaign

Grant Proposals
1

Liquidity Provision and Incentive Program Grant Proposal

Request

Receiving Address:

0x1337761fDCccB6ba4c181CeB20E064ac262879C0

AJNA Amount:

1’500’000 AJNA tokens

Applicant and Team Information

Applicant Name:

AJNA CARTEL

Team Members:

  • alenski
  • gunboats
  • jnp
  • synthquest

Email:

gb407rva@dw8lq1.my.id

About you and/or the team:

We are a team of experienced DeFi enthusiasts and active community members of the Ajna Protocol. Together, we are committed to enhancing the Ajna ecosystem through strategic liquidity provision and incentive programs.

Additional Links:

[Not provided]

Project Information

  1. What is it? This project involves deploying 1’200’000 $AJNA into liquidity pools following a strategy and allocating 300’000 in $AJNA for bribes (incentives) to encourage additional liquidity provision. Our aim is to boost the liquidity of the Ajna Protocol, improve trading conditions, provide lucrative DeFi opportunities for $AJNA and foster greater user engagement within the ecosystem.
  2. What problem is being solved, how? Insufficient liquidity can lead to higher slippage and less favorable trading conditions, deterring users from engaging with the protocol. By injecting substantial liquidity and offering incentives to other liquidity providers, we aim to:
  • Enhance market depth and reduce slippage.
  • Attract more traders and users to the Ajna Protocol.
  • Stimulate liquidity provision.
  • Seeding liquidity would create another way to speculate and arbitrage reserve auction on rollups**
  1. How will this project be a source of growth or success for Ajna? Step-by-Step Summary:
  • Liquidity Injection: Deploy 1’200’000 AJNA into selected liquidity pools (bwAJNA-AJNA, AJNA-wETH) to significantly increase available liquidity.
  • Incentive Distribution: Allocate 300’000 AJNA as bribes to incentivize other participants to provide liquidity. The incentive amount is calculated to ensure a positive bribe efficiency resulting in a sustainable growth in liquidity and incentives.
  • Improved Trading Experience: Enhanced liquidity leads to better pricing and lower transaction costs, attracting more users.
  • User Acquisition and Retention: Superior trading conditions encourage user growth and sustained engagement with the protocol.
  • Ecosystem Strengthening: Increased activity and liquidity provision contribute to the overall robustness and appeal of the Ajna ecosystem.
  1. What is/are the objective(s)?
  • Primary Objective: To sustainably increase the liquidity within the Ajna Protocol, thereby improving user experience and attracting a larger user base.
  • Secondary Objective: To encourage widespread community participation in liquidity provision through targeted incentive programs.
  1. What is/are the deliverable(s)?
  • Deployment of 1’200’000 AJNA into designated liquidity pools.
  • Distribution of 300’000 AJNA as bribes/incentives to other liquidity providers.
  • Dune Dashboard detailing liquidity levels, incentive distribution, and impact metrics.
  1. What is the timeline for completing the deliverables?
  • Week 1:
    • Set up the multi-signature wallet fully.
    • Finalize selection of liquidity pools.
    • Request listing on Aerodrome Finance
    • Initiate deployment of liquidity.
  • Weeks 2-4:
    • Complete the deployment of 1’200’000 AJNA into liquidity pools.
    • Begin distribution of bribes/incentives.
  • Months 2-3:
    • Monitor liquidity levels and market response.
    • Adjust strategies as necessary based on performance data.
    • Continue incentive distribution.
  • End of Month 3:
    • Compile and publish a comprehensive report.
  1. What level of support do you anticipate needing through the duration of the project?
  • Ajna twitter promoting the Aerodrome gauge.
  1. How often will progress reports be published to the forum?
  • Each month, we will publish detailed progress reports that include:
    • Current liquidity levels and changes over time.
    • Data on incentive distribution and its effects.
    • Insights and any proposed adjustments to the strategy.
  1. What are the estimated costs associated with the full completion of this project?
  • Grant amount and gas.
  1. If applicable, how will the project be maintained after completion of the grant?
  • Ongoing Monitoring:
    • The team will continue to oversee the liquidity pools to ensure sustained liquidity levels.
    • We may reinvest returns or adjust positions to maintain market health.
    • Provide recommendations for future liquidity initiatives.

Additional Information

  1. How will you handle a delay in your project timeline?
  • Proactive Communication:
    • Notify the Ajna community and relevant stakeholders immediately upon identifying potential delays.
    • Adjust the project timeline while striving to meet overall objectives without compromising quality.
  1. How will you handle a scenario where the project can’t be completed due to insufficient funding or other factors?
  • Scope Adjustment:
    • Re-evaluate the project’s scope to align with the available resources.
    • Prioritize key deliverables that offer the most significant impact.
  • Alternate Solutions:
    • Seek additional funding sources or partnerships if feasible.
    • Transparently communicate the situation and planned adjustments.
  • Fund Management:
    • Any unused funds will be kept and used within the grant scope.
  1. How will you handle a scenario where the project is completed, but significantly under-budget?
  • Responsible Reallocation:
    • Propose using surplus funds to extend the incentive program or enhance project outcomes, subject to approval.
  • Transparency and Accountability:
    • Provide a detailed financial report outlining expenditures and remaining funds.
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