Protocol-Owned Liquidity(POL): How POL rewards $HALO governance stakers
Recently, investors have been enjoying a dramatic increase in HALO governance staking, giving three figure APRs. How has such an increase come about? Will it be sustained?
The answer is right here. At Angel Protocol, we are using protocol-owned liquidity (POL) to raise governance staking to these ‘degen’ levels. This article describes what POL is & why we have chosen to reward stakers in this way.
If you’re less interested in the underlying theory and want to simply scoop triple-digit staking APR, just visit the Angel Protocol Governance site where you can buy and stake $HALO.
Want to know more? Read on!
Angel Protocol is now employing its own liquidity — $HALO tokens it holds itself, to benefit governance stakers.
Instead of incentivising liquidity providers, we are transferring 1M $HALO monthly to the governance pool to be divided equally among stakers each ‘harvest’. At the moment, this is a boost of 10,958 HALO per harvest (8-hour frequency) shared between those who have staked.
In other words, Angel Protocol is using its own $HALO to bootstrap governance staking rewards, instead of using this $HALO to incentivize liquidity providers.
The reason is simple: In this way, Angel Protocol is able to provide protocol-owned liquidity (POL) rather than relying on external capital, that provides $HALO with other collateral to populate liquidity pools.
This capital is more likely to flee these liquidity pools for transient, high-yield options that inevitably appear as new projects bootstrap their own liquidity. In this “race to the bottom”, new protocols are forced to offer ever-higher temporary APRs to attract new liquidity — which lasts only until the next project comes along with even higher APR. The capital moves on.
The rat race lasts as long as every project participates in it. Angel Protocol has been keen from the get-go to explore better methods of liquidity distribution and stakeholder rewards.
For this reason, we have elected to provide our own liquidity. This accomplishes two goals:
- It avoids artificially high emissions that have negative long-term effects on token price
- It rewards governance stakers who participate in the protocol, rather than rely on transitory capital which historically dumps tokens in search of greener pastures
To enable this, it’s Angel Protocol that bears the cost of providing these highly attractive governance rewards. To us, 1M $HALO per month is a worthy investment to reward governance stakers in advance of the launch of the Charity Marketplace and $HALO airdrop (both targeted for mid-February).
Avoiding token dumping
If the only sustainable ways to combat token dumping is to reward loyal stakers and to offer a compelling vision for both the project and the token, then how does Angel Protocol do this?
Well, the $HALO airdrop and enhanced governance staking rewards outlined here are two examples of the former — showing supporters that Angel Protocol is committed to rewarding their loyalty.
The Charity Marketplace is an example of the latter: a major innovation that will create a massive opportunity for Angel Protocol to quickly grow its prominence and reach in the space.
The Charity Marketplace is a major milestone on Angel Protocol’s journey to become the world’s largest community-owned charitable organization. Leading up to its launch, and beyond, we are happy to use our own liquidity to reward governance stakers and supporters.
Join us on February 14th for the $HALO airdrop and the launch of the charity marketplace.