dForce Unveils a 1M ARB Liquidity Mining Initiative on Arbitrum!

We are excited to announce a 1M ARB liquidity mining campaign on Arbitrum, which dForce has received through the Arbitrum STIP grant program (proposal).

dForce is committed to distribute 100% of the ARB tokens granted through a number of marketing campaigns directly to all Arbitrum users, starting from January 18th for 10 weeks until March 28th. Read on to learn all the details of this initiative!

The Campaign

The ARB tokens received through the Arbitrum STIP program will be allocated across the following initiatives, focusing on bootstrapping the adoption of USX and Unitus Lending across the Arbitrum ecosystem:

  1. Boost Lending and Borrowing markets on Unitus Finance
  2. Incentivize USX liquidity on DEX
  3. Host new LSD Vaults and boost adoption of LSD assets on Arbitrum
  4. dForce Grant Program
  5. …and more campaigns underway, stay tuned!

Please note that, to make sure that the ARB tokens gets distributed effectively, the allocations to each and future campaigns might be subject to change on a weekly basis, which shall be disclosed on our Forum. Follow dForce on X to make sure you don’t miss any of our comunications.

This said, keep reading to learn more about the initial dForce campaigns!

1. Boost Lending and Borrowing markets on Unitus Finance :large_blue_circle:

Following the X Plan, in November 2023 dForce did a spin-off and rebranded its Lending protocol to Unitus Finance. Unitus has then emerged as a Lending protocol available on 6 different chains, with the Bonded LP mechanism where $UTS rewards are assigned only to those who provide liquidity for UTS/USX and/or UTS/DF on designated DEXes such as Camelot on Arbitrum for at least 1% of the value of their deposit on the platform. Read this FAQ for more details about BLP.

Regarding the Liquidity Mining campaign, a substantial portion of the incentives will target stablecoin markets on Unitus and USX staking via iUSX.

To learn more about Unitus, check their docs and join their Telegram | Discord chats.

2. Incentivize USX liquidity and BLP on Camelot :crossed_swords:, Curve other DEX

Liquidity is key for the success of a token as well as a stablecoin. For this reason, we are further incentivizing with ARB tokens some liquidity pools of our ecosystem on the V2 of Camelot - the major DEX on Arbitrum. The primary focus will be on Unitus’ Bonded-LP pairs - UTS/DF and UTS/USX on Camelot. The pair USDC-USX will also be incentivized on Curve and other DEX.

By proposing ARB incentives to the USX pairs in Camelot and other DEX, we aim to deepen BLP liquidity for UTS and DF tokens, significantly amplifying Unitus’ lending incentives. This approach also aligns with our liquidity partner Camelot, Curve other DEX, reinforcing their leadership and building solid liquidity depth on Arbitrum.

Click here to read Camelot’s tutorial on how to add liquidity on its V2!

3. Host LSD Vaults with Aspida :red_circle:

Aspida Network is an emerging protocol that is introducing a decentralized and secure staking service tailored for LSD assets. Aspida empowers users across diverse layers and networks to effortlessly earn lucrative rewards on top of their Liquid Staking of ETH.

Aspida has published a detailed proposal on the dForce forum. According to the proposal, Aspida will set up Vaults for users to deposit wstETH (Lido) and ETH to earn $ARB as well as Aspida’s points. Throughout this stage, the wstETH and ETH staked in the vaults will be eventually deposited into Unitus Finance.

Recognizing the critical role of LSD assets in Arbitrum’s success, dForce has entered into a strategic partnership with Aspida Network. As such, dForce will integrate Aspida vault and will co-incentivize with Aspida to bootstrap the LSD Vaults. Aspida will also incentivize users with Shields as part of their larger point campaign program.

Note that this initiative will begin later in January/February. Stay tuned and follow dForce as well as Aspida on X to stay updated!

4. dForce Grant Program :white_check_mark:

dForce will launch a 60-day campaign with an open grant paid in ARB tokens to incentivize protocol integrations with USX and/or Unitus on the Arbitrum network. Please note that all STIP incentives received through the dForce Grants Program should adhere to the Arbitrum STIP Eligibility Requirements as outlined in this post.

5. Future campaigns :earth_africa:

We have initiated conversations with several protocols that express interest in integrating with dForce (USX and/or Unitus Finance). We are delighted to offer all the essential resources required to support the growth of the dForce ecosystem.

Our commitment extends beyond enhancing the dForce ecosystem; it aims to foster a thriving environment where creativity, collaboration, and progress flourish. Together, we aim to contribute to a connected Arbitrum community!

If you want to discuss with our team, join our Telegram chat and reach out for us!

:end: Final Thoughts

If you have read all the way until here, then you’re ready to make the most out of dForce’s Liquidity Campaign on Arbitrum in partnership with Unitus Finance, Camelot, Curve, and Aspida, starting from January 18th and lasting until the 28th of March 2024!

We look forward to seeing you all participating in the campaign! Join the dForce community on Telegram to get all the latest updates and to ask questions if you have any.

:books: A deep dive into USX

$USX is the first decentralized stablecoin natively integrated with dForce’s DeFi matrix, featuring permission-lessness, non-custody, high capital efficiency, and multi-chain liquidity.

USX’s pegging mechanism is mainly maintained by Liquidity Stability Reserve (LSR), which enables 1:1 swap between USX and a number of supported stablecoins including USDC, USDT, DAI.

In addition, powered by the Protocol-Direct-Liquidity-Provision (PDLP) module, $USX’s interest rate on integrated lending protocols can be anchored within a capped range. When market demand for $USX is high and borrowing interest is pushed up, more $USX liquidity will be supplied to lending protocols to lower the utilization rate, making it less expensive to borrow $USX which can help to restore its peg.

dForce also allows users to mint USX against a variety of assets with fixed interest rates through dForce Vault. Each vault may implement different risk parameters based on the specific collateral asset supported, which is jointly decided by $DF holders through governance.

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