# ARC: Extend AAVE Liquidity Mining Rewards **URL:** \ **Category:** Governance\ **Created:** [July 15, 2021, 9:47pm UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852 "2021-07-15T21:47:19Z")\ **Posts on this page:** 13\ **Page:** 4
**Author:** ![eboado](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/eboado/32/2268_2.png) [@eboado](https://governance.aave.com/u/eboado)\ **Post date:** [August 7, 2021, 11:55am UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/61 "2021-08-07T11:55:37Z")
I would like to highlight how key is that liquidity mining incentives are rewarded in stkAAVE. Yes, the budget if we take into account % of the Aave DAO treasury or even $ value is important, but let’s not forget that technically, the liquidity mining program is creating a really interesting feedback loop where people providing liquidity on the protocol become automatic participants on the Safety Module, protecting the protocol. Of course, it is possible to argue that they simply don’t need to stay there, but I think the majority does, most probably because of 2 reasons: - They believe on the Aave Protocol long-term. - They profit from the liquidity mining of the protocol + the incentives of the Safety Module. - They want a say on governance. So is it even possible to understand the budget on liquidity mining on the protocol as a direct growth mechanism of the reserve factor? I don’t think so. **It’s a mechanism to grow involvement of liquidity providers on all other aspects of the Aave ecosystem**. Because of that, I support keeping the same emission for now during the next 6 months, adjusting to give bigger role to assets like DAI. ---
**Author:** ![Sergey](https://avatars.discourse-cdn.com/v4/letter/s/9fc348/32.png) [@Sergey](https://governance.aave.com/u/Sergey)\ **Post date:** [August 7, 2021, 1:19pm UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/62 "2021-08-07T13:19:54Z")
This is the proposal for new LM distribution: ![stkAAVE](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/ea8082282e502ea3009d038d2f07d695a102f0fa.png) You can leave comments in the calculation file: > **[stkAAVE](https://docs.google.com/spreadsheets/d/1-Q0Mv4b-e42N-ldG0v-5ZBX1yTwlFKXOReY399kt_uw/edit?usp=sharing)** > > New LM Program > > OLD > Current LM Program,stkAAVE Reward,Lender, %,Borrower, %,Deposited 07/08/21, USD,Borrowed 07/08/21, USD,stkAAVE Lender APY, %,stkAAVE Borrower APY,... ---
**Author:** ![state](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/state/32/1094_2.png) [@state](https://governance.aave.com/u/state)\ **Post date:** [August 7, 2021, 6:11pm UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/63 "2021-08-07T18:11:41Z")
personally im interested in lowering so that we can redirect some of the aave to boostrap new markets like the AMM one or optimism/arbitrum, this can also be good for adoption ---
**Author:** ![EzR3aL](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/ezr3al/32/10721_2.png) [@EzR3aL](https://governance.aave.com/u/EzR3aL)\ **Post date:** [August 11, 2021, 9:02am UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/64 "2021-08-11T09:02:58Z")
That’s it. There are still incentives needed for expanding the ecosystem. LM only shouldn’t be the main thing to do. ---
**Author:** ![stani](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/stani/32/17_2.png) [@stani](https://governance.aave.com/u/stani)\ **Post date:** [August 16, 2021, 1:44pm UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/65 "2021-08-16T13:44:08Z")
First of all it’s been very interesting discussion to follow with plenty of interesting ideas that could be implemented short-term or long-term depending on the technicalities and community support. As a community member I have bee quite satisfied of the liquidity mining program for the objective part of bringing more users as stakeholders for the Aave Protocol and distributing the governance power to a wider decentralized extent. Especially the idea of users receiving StkAAVE means that they become directly also backstoppers of the protocol and have automatically skin in the game. For future long-term reference I would recommend community members to consider whether there could be additional staking utility for StkAAVE - maybe allowing community members to take additional risk or “asset-specific” risk based on staking StkAAVE. Just some food for thoughts. In terms of the @Anjan-ParaFi’s proposal on asset specific allocation and reading @TokenBrice’s thoughts I would say that most liquidity that a liquidity protocol such as the Aave Protocol needs is stablecoins - incentivised as diversely as possibly and also encouraging stablecoins that are aiming towards decentralization such as RAI. I would not either go too much into rewarding assets that are more used as collateral and are already been listed long time ago unless if that particular asset-linked community is strategically important for the Aave community - I would rather incentivise new listed assets with fixed time period to kickstart supply liquidity and extend governance power and ownership of the protocol to that new community, this would also bring more diversity to the community. In terms of GUSD - I haven’t seen substantial growth of the stablecoin across DeFi, however supporting it does bring more diversity. Maybe GUSD incentives could be directed to RAI for the time being and continue experimenting. Would also say that liquidity mining on Aave Protocol indeed has been very successful experimentation and brought the protocol to become the biggest and most utilized protocol in DeFi - would also see the recursive borrowing more as a practice for capital efficiency than anything else for now and the @TokenBrice’s point on the increased surface for coverage is valid point but which can either be serviced by increasing the current rewards to increase the supply in to the SM or by bulking up the risk parameters on liquidations on less liquid assets - the technical risk of the protocol should anyways decrease over time, which means that the risk of slashing in large amounts decreases (but is not 0 in any case). Another thing to consider is that the Aave Protocol is becoming more self-sustainable than ever before, meaning that the RF collected can be used in the future in various ways and essentially means that the DAO itself can hire developers through Developers DAO, a potential sub-dao for the Aave DAO, which would allow more craftier proposals to be made by the community such as the idea of HF-based liquidity mining rewards. Summa summarum, I would support the continuation of the LP rewards for the next 3 months or even by end of the year with adjustments and recommendations from the community that are easy to implement - such as decreasing or removing GUSD, adding RAI (small amount), increasing the total emissions slightly on SM to increase the SM capitalization. During this next 3 months - the community could use the time to come up with more craftier proposal where there could be more creative ways to manage the rewards distribution (HF-based incentives, staking StkAAVE or something else). ---
**Author:** ![pakim249](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/pakim249/32/1139_2.png) [@pakim249](https://governance.aave.com/u/pakim249)\ **Post date:** [August 16, 2021, 9:15pm UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/66 "2021-08-16T21:15:41Z")
I saw an interesting idea from the FEI asset listing proposal that I think would allow incentives to line up better between AAVE governance and the projects which it provides LM rewards for. > [@ARC: Add support for $FEI as a deposit currency](https://governance.aave.com/t/arc-add-support-for-fei-as-a-deposit-currency/4542/28): > > Assuming the technical implementation can be worked out, Fei Protocol will add TRIBE incentives on both borrowing and lending FEI to drive more volume. We will discuss and commit to numbers on these via snapshot in our community before bringing any FEI proposal on-chain for AAVE. In the current defi ecosystem, it is common practice for projects to provide “staking” rewards for users that deposit their tokens into a staking vault as a reward for holding their tokens. If projects could inject their own liquidity mining rewards into AAVE at their leisure, I believe this represents a huge opportunity for AAVE. There are many projects that wish to boost the activity of their token, especially in the realm of stablecoins. AAVE is a cornerstone of stablecoin liquidity, and there are many stablecoin projects that regularly run promotions to boost their own project’s liquidity. In fact, as we speak there is $250,000 of GUSD earning free interest for depositors in PoolTogether. TrustToken runs their own undercollateralized lending platform that rewards their TRUST tokens to depositors. PAXOS regularly runs promotions for users on various platforms as well. Of course this all applies to non-stablecoins as well, but I agree with you that stablecoin liquidity is the most important and so am focusing on that. Ultimately, I don’t think it’s healthy for AAVE to support liquidity mining all by itself. This is not only a burden on the reserves, but also a centralized process. Projects should be empowered to boost the liquidity of their own project as much as possible, and this opens the door for AAVE to match the contributions of projects that do so. Interested to hear any feedback on my rough draft of an idea. ---
**Author:** ![Anjan-ParaFi](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/anjan-parafi/32/547_2.png) [@Anjan-ParaFi](https://governance.aave.com/u/Anjan-ParaFi)\ **Post date:** [August 18, 2021, 1:29am UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/67 "2021-08-18T01:29:38Z")
[https://snapshot.org/#/aave.eth/proposal/QmeHAwW7XwUD3vqYLMRPF8MJiXkj2nnbRg1ae7mZ1SNQdm](https://snapshot.org/#/aave.eth/proposal/QmeHAwW7XwUD3vqYLMRPF8MJiXkj2nnbRg1ae7mZ1SNQdm) A Snapshot vote has been posted with a new distribution proposal including feedback from the community. Please vote. ---
**Author:** ![KriptoHayat](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/kriptohayat/32/800_2.png) [@KriptoHayat](https://governance.aave.com/u/KriptoHayat)\ **Post date:** [August 18, 2021, 5:56pm UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/68 "2021-08-18T17:56:55Z")
> [@Anjan-ParaFi](#): > > - **Dağıtılan Değer:** Likidite madenciliği kampanyası sırasında, Ekosistem Rezervinin ~%7’si kullanılarak Aave v2’de borç alanlara ve borç verenlere 198.000 stkAAVE dağıtılacaktır. Bu, ödül olarak 82 milyon dolara eşittir (LM programı başladığından beri AAVE VWAP). Defi cannot be stopped. Incentives for the community continue. ---
**Author:** ![Emilio](https://avatars.discourse-cdn.com/v4/letter/e/f475e1/32.png) [@Emilio](https://governance.aave.com/u/Emilio)\ **Post date:** [August 26, 2021, 12:55pm UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/69 "2021-08-26T12:55:53Z")
Hello everyone, while reviewing the latest proposals and the current proposal configuration, i noticed that an important piece of configuration for the liquidity mining for the new assets added (assets that were not rewarding during the previous liquidity mining round) is missing. Therefore, although the UI is showing as the rewards are activated, they aren’t actually being distributed yet (only for the new assets - old assets are working just fine). This will require another proposal to fix. I will coordinate with @Anjan-ParaFi to help solving the situation. ---
**Author:** ![MatthewGraham](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/matthewgraham/32/1068_2.png) [@MatthewGraham](https://governance.aave.com/u/MatthewGraham)\ **Post date:** [September 2, 2021, 3:12pm UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/70 "2021-09-02T15:12:12Z")
Hi @Emilio Can DPI be added to the list of assets to receive liquidity mining rewards when the new AIP is submitted? DPI was listed on 21st August, and in just over 2 weeks already has $20M deposited!! There is $21.3M un-incentivised on Cream which could be lured across to Aave V2 with incentives. Please do let us know, if we need to submit a fresh proposal for this. Tagging @Anjan-ParaFi for visibility. ---
**Author:** ![daren\_eth](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/daren_eth/32/4970_2.png) [@daren\_eth](https://governance.aave.com/u/daren_eth)\ **Post date:** [September 7, 2021, 12:26pm UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/71 "2021-09-07T12:26:13Z")
@Emilio any update on this after ~2 weeks? Also, will be it be retro-active to when they were supposed to be in place once they do get implemented? ---
**Author:** ![TrueUSD](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/trueusd/32/917_2.png) [@TrueUSD](https://governance.aave.com/u/TrueUSD)\ **Post date:** [September 9, 2021, 11:20am UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/72 "2021-09-09T11:20:12Z")
Hi, @Emilio This is TrueUSD team. Thank you for adding rewards for TUSD market. Please let us know the updates about fixing the LM distribution bug or update in AAVE forum. Thanks. ---
**Author:** ![Emilio](https://avatars.discourse-cdn.com/v4/letter/e/f475e1/32.png) [@Emilio](https://governance.aave.com/u/Emilio)\ **Post date:** [September 23, 2021, 10:49am UTC](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/73 "2021-09-23T10:49:07Z")
hey, sorry about this - i missed these messages. The fix has been applied, it is impossible unfortunately to give retroactive rewards - the speed of emission though has been increased to match the rewards for the 3 months as it was scheduled initially. [Previous page](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852.md?page=3)