#1 Kickstart Incentives on Commodo (Discussion)


Commodo is a decentralized, open-source, IBC-native, collateralized lending-borrowing platform on Cosmos, built using the Comdex infrastructure. Any user can earn interest by depositing assets to the platform. Users can overcollateralize assets to borrow from the platform by paying an interest rate.

Commodo will soon be launched on the Mainnet. It will have a reward program for early adopters. We open the discussion to the community on an upcoming proposal to kickstart the incentive program on Commodo, which will be distributed per the reward model from Comdex tokenomics.

Rewards mechanism:

As discussed previously, the master pool would stay a central incentive pool. The master pool would be used on Commodo and other apps as a prerequisite for earning token incentives. A better understanding of the reward mechanism can be gained from cSwap docs.

To earn rewards, users must deposit assets to the CMDX-ATOM master pool on cSwap. Depending on the amount deposited in the pool, users will gain eligibility for rewards on Commodo for borrowing assets.

Users will earn incentives on borrowing proportional to the amount they have deposited in the master pool. Incentives for these two actions are determined dynamically depending on the total assets borrowed from the platform and assets borrowed from each cPool.

E.g., 1000$ liquidity in the Master pool on cSwap makes a user eligible to earn incentives on 1000$ worth of borrow positions.

Note: Rewards are in $CMDX

We intend to run the incentives until the protocol matures. After discussion with the community after maturity, the platform will optimize these incentives again. It would be beneficial for the community to have a detailed and transparent discussion about the proposed rewards program before making a decision on the proposal.


This is where the strength of having all the tools around one chain really kicks in.

Linking the rewards on borrowing-lending with cSwap is a very smart move. You achieve liquidity and risk reduction in terms of price movements for the protocol, but a joint incentive structure for the LP/borrowing positions.

Do you have an idea on the size of the incentives? That seems to be missing in the proposal.