Liquidity Mining
We are reserving 6 million KYD tokens specifically for liquidity providers in future liquidity schemes. This share of the total supply will serve as an incentive for these providers, helping offset the impermanent loss they may experience due to the risks and volatility involved in providing liquidity.
The principle is simple: the more liquidity you offer and the longer you hold it, the greater your share in the KYD pool. However, we are still in the process of deciding which specific program to use and which decentralized exchanges (DEXs) we will launch a pool and create incentives for liquidity providers (LPs).
We're considering working with partners that offer active liquidity management or incentive vaults that optimize fee collection and liquidity. This would allow us to connect with other crypto projects that could promote our LP pool to a wider audience. It also helps free our team from the responsibility of managing the LP programs so they can focus on building and improving the project.