#2 Commodo Incentive Program ( Phase 1)

Commodo Discussion
1

Overview:

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.

To incentivize borrowing with Commodo, we are proposing an incentive program for early adopters. We would like to open the discussion to the community regarding the proposed boosted rewards mechanism.

As discussed previously, the master pool will be used as a central incentive pool, which will be used on Commodo and other apps as a prerequisite for earning token incentives. 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.

Incentive mechanism:

We open the discussion to the community on an upcoming proposal to start the first phase of incentives on Commodo for borrowers by allocating 100,000 CMDX for 14 days - to be distributed as per the model for Liquidity rewards.

To be eligible for boosted rewards, a user must have provided liquidity on the CMDX-ATOM master pool on cSwap. Depending on the amount deposited in the Master pool, users will earn boosted rewards on Commodo for borrowing CMST and ATOM. Incentives for these actions are determined dynamically depending on the minimum amount of CMST and ATOM borrowed from each cPool and the liquidity provided in the Master pool on cSwap by CMST and ATOM borrowers.

Boosted rewards are directly sent to the user’s wallet every day at a specific time.

For example: if a user has deposited $100 in the master pool, they are eligible for Boosted rewards of up to $100 on each borrowed position of CMST and ATOM in any cPool.

Detail on the rewards distribution is mentioned in Commdo docs:

https://docs.commodo.one/rewards

By leveraging two apps on the Comdex chain, this intervened reward mechanism can avoid mercenary farming. As long as borrowing on Commodo would directly increase CMDX liquidity, borrowers will be long-term supporters as they are LPs in the ATOM/CMDX pool on cSwap.

Incentivized cPool:

  • CMDX

The breakup of rewards for each pool is as follows:

Note: Rewards are in $CMDX

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2 Likes
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It’s promising to see that Commodo Finance is offering early adopters boosted rewards to incentivize borrowing on their platform. By allocating 100,000 $CMDX for 14 days and dynamically determining incentives based on borrowing and liquidity, Commodo is taking a smart approach to increasing platform usage and liquidity.

I like the fact that this incentive program, though very attractive, is still designed to avoid mercenary farming by leveraging two apps on the Comdex chain. THis way borrowers who earn rewards will also be long-term supporters by serving as LPs in the ATOM/CMDX pool on cSwap, which will help further increase CMDX liquidity.

Overall, its a Yes from me. Ready to vote for the proposal on-chain & increse my positions on cSwap & Commodo to maximize my reward potential.

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What is the target to be achieved?
I.e. if this first round is not successful enough for what you would like to achieve, will there be other rounds?

How deep are the “pockets” for incentives? Because we now have incentives on Osmosis pools, on cSwap and they will be on Commodo as well. It might be quite the drain on the possibilities the team has to stimulate usage of the apps. Making sure there is a plan for the longer run would be a sure plus for me.

2 Likes
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These incentives are to bootstrap commodo usage. We understand the importance of sustainability and have a plan for the long-term sustainability of our incentive programs. As more cPools are added and liquidity and usage on our platform grow, it may be ideal to reduce the rewards. We will continue to monitor the effectiveness of our incentive programs and adjust them as we do for cSwap.
Comdex has allocated 25M tokens to the rewards for rewarding user activity and liquidity CMDX Token Economics & Utility. CMDX is the native token of the Comdex… | by COMDEX | Comdex Official

1 Like
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Thanks for the reply!

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By when can we expect these to go live?