We have opted to delay AGORA liquidity mining unlocks which was scheduled for mid Feb.
Technologically everything is in place, the reasons are more business and strategic. We had a deal with the leading AMM on Metis where they would incentivize our LP via their tokens, we would of course be giving them an equal value of AGORA tokens to cover this.
The issue is the AMM’s token has been on a rapid decline for the last few weeks and has lost almost 80% of its value. The numbers we agreed upon earlier no longer make sense, and since the AMM has opted to reduce the emissions from their end they have limited flexibility on their end to make the deal tenable.
We believe that this has presented us with an opportunity to accelerate our roadmap.
AMMs, alongside lending markets are the 2 key pillars of DeFi. Capturing the AMM space would create more value for Agora holders by generating significantly more revenues which can then be passed through.
Presenting Agora Swap
We have a concept that we have been working on around kToken swaps, the receipt tokens you receive from depositing in Agora. The idea here is the assets in LPs lie fallow most of the time until a swap is executed. We have devised a mechanism by which LPs can earn both lending APY (from Agora staking) as well as trade fees (from Agora Swap). Built on top of the trusted Uni v2 architecture, this AMM would be highly profitable for LPs as well as increase liquidity in Agora.
LPs on Agora Swap would also be able to use them as an asset and borrow against them on Agora+. Talk about a 1,2,3 combo!
- Earn lending APY
- Earn trade fees
- Borrow against them
While also earning Agora rewards!
AGORA token holders will also receive platform fees from transactions which gives users more reasons to hold.
Agora and Drachma are the #2 and #4 projects on Metis respectively. Whenever they unlock they would be a massive prize for any AMM. Releasing them on our homegrown AMM means we can capture the fees associated with the LPs of these two pairs as well as gun for the #1 position on Metis in terms of TVL.
Learning from our mistakes of committing to unlock dates we are not going to set expectations around when unlocks will happen — only that they will happen shortly after Agora Swap goes live, on Agora Swap. The team is working to deliver Agora Swap as quickly as possible while ensuring security.
We want to unlock AGORA as soon as possible as well, but If you’re long AGORA and Metis like we are, we hope you see these decisions as being the best for Agora, its token holders, and our ecosystem going forward.
- Agora will build its own AMM called Agora Swap.
- LPs earn both trade fees + staking fees + AGORA rewards.
- AGORA token holders will have much higher revenue potential courtesy of the AMM fees.
- AGORA unlock + farm will take place on Agora Swap so our ecosystem captures all the value and TVL.