New on Algorand/Yieldly: Staking of Liquidity Pool Tokens
Algorand’s staking platform, Yieldly, announced today that it will soon be offering the option to stake liquidity pool tokens, encouraging more investment in the liquidity pools for ASAs (tokens running on the Algorand blockchain).
The first such staking pool will be for Akita Inu ASA, and it is coming before the end of the year.
Investors can already put an equal value of Algo and Akita Inu ASA into the Akita/Algo liquidity pool on Tinyman (the DEX), and get liquidity-pool tokens in return. These LP tokens appreciate with fees from all subsequent Algo-to-Akita and Akita-to-Algo trades. The new LP staking on Yieldly will make it possible for people to stake their LP tokens to get additional Yieldly tokens.
It sounds like other ASAs will follow suit soon after.
Low liquidity is a problem for many ASAs, maybe this will help fix it by offering that extra incentive for people to invest in liquidity pools. I’m assuming this has been done at least some on other blockchains already… Can anyone comment on what impact it has had there?
Akita Inu ASA: https://akita.community