Follow the money.
Incentives are a powerful force in DeFi and we’ve seen countless projects attract huge amounts of liquidity by liberally handing out tokens. While this approach certainly generates hype and big TVL numbers, the effect is usually short-lived as most of this mercenary capital tends to farm and dump the proffered tokens before moving on to the next opportunity.
The Ubiquity model aims for sustainable stability using a measured approach that is constantly evolving based on market developments. Our goal is to build a DeFi primitive that is censorship-resistant and widely integrated across the ecosystem. As a first step, we will be launching our Proxy Yield Aggregator in Q4, which will offer our users double the yield on their crypto assets when compared to the underlying base yield.
The Ubiquity Dollar (uAD) token contract contains the following transfer hooks that can be enabled on demand:
- Incentives for listed addresses that send uAD
- Incentives for listed addresses that receive uAD
- Incentives for smart contracts that interact with uAD
- Free Money Mode: Incentives for all uAD transfers
These open up a wide range of marketing strategies that we believe are better suited to the Ubiquity protocol than the traditional airdrop and unsustainable yield model.
Some possible use-cases:
- New User Promotions: This would be analogous to new user bonuses offered by centralized exchanges. Addresses that buy uAD for the first time would receive a bonus in UBQ.
- Direct Incentives: Addresses that buy uAD when it trades below $1 can be rewarded with UBQ.
As we work towards the launch of the Proxy Yield Aggregator and partial collateralization of uAD, we would like to ensure that the uAD peg is as robust as possible by utilizing UBQ emissions in the most efficient manner.
Got ideas? We’d love to hear them. Join our Discord and contribute to building the decentralized stablecoin that DeFi deserves!
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