Liquidity Provider Incentive Program

Incentive Program

We will be introducing a program to provide incentives to those who provide liquidity to the pair pool of normal asset and clone asset (lfAsset), lock-up of Ladder Token, or Ladder / ETH (WETH). Depending on which pair you provide liquidity to, the incentives allocated will be different.

※ As of July 2024, this process is not yet operational. This is because Ladder Finance has not yet officially launched the Protocol for raising assets. The Incentive Program will start immediately after the funds are raised or the protocol is launched.

※ After the official launching, the percentage of incentives allocated to pairs may change, depending on the DAO's decision, etc. Ladder Finance respects the decisions of the DAO but reserves the right to reject the decisions of the DAO if it is expected or foreseen that the DAO may cause damage to the company beyond the protocol, such as agenda items that are too favorable to a specific person, actions that harm others, or the security/existence of the protocol, causing widespread damage to unspecified people or depositors.

Above all, the basic incentive program can be represented as below :

Ladder Token Staking (POOL)

ladder token contarct address:

ETH / lfETH (FARM)

ETH contract address:

lfETH contract address:

LP contract address:

The percentage of incentives allocated to each pool is 20% and 80%, respectively. This is based on the multiplier and there is no fixed value yet. When the Ladder Strategy generates a profit, it considers several variables (inflation rate, market conditions) to determine the number of tokens allocated to the incentive contract. All factors can be variable and may be affected by market conditions and the price of tokens.

What if the pool (Asset + clone Asset) is significantly low-liquidity despite having an incentive program?

We are clearly aware of these issues and understand how devastating they can be to the protocol, so we are looking at putting some of our initial funding into ETH / lfETH so that we can prepare for them. We are also looking at allocating some of the underlying assets we have under management and some of the revenues from institutional investors, in addition to depositors' funds, to ensure liquidity and to reward incentive pools. Please understand that it is hard to say what we are going to do until we have clear data in the numbers. For all assets that will be serviced in the future, including ETH / lfETH, we recognize their importance and will be servicing them to leapfrog the LSDfi sector on zkSync.