Augmented Finance (AGF) introduces new tokenomics incentivizing buying and holding AGF to ensure the protocol’s longevity
Summary
- New Augmented Finance (AGF) tokenomics offer 4x boosted yields via AGF locking for the active protocol users (suppliers and borrowers of assets, stakers of Augmented Finance’s interest-bearing agTokens, and providers of liquidity for AGF/ETH Uniswap pool)
- Users who lock AGF for a period from 1 week to 4 years are rewarded with the xAGF token which gives holders time-weighted yield boost, share of protocol fees, and voting power
- AGF locking will drive strong incentives to buy and hold AGF, thus helping bolster the resilient protocol through all market cycles
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Dear Augmented Finance community,
We are proud to introduce the new Augmented Finance (AGF) tokenomics!
Together with a group of DeFi experts, we performed 200 rounds of agent-based simulations to test and optimize the protocol tokenomics. The new Augmented Finance (AGF) tokenomics has the best performance and resilience out of all the models we tested. We engineered and tested the new Augmented Finance (AGF) tokenomics to benefit the protocol’s active users, increase the protocol’s total value locked (TVL), and provide strong incentives to buy and hold the AGF token.
The simulation results for the new Augmented Finance (AGF) tokenomics are presented in the chart below:
AGF price simulation results for the upgraded Augmented Finance’s tokenomics
Key changes in the new Augmented Finance (AGF) tokenomics
1. Yield Boost. In addition to obtaining a voting power and receiving a share of protocol fees, AGF holders will be able to boost their yields (APY) via locking AGF. Holders can lock their AGF for a period of 1 week to 4 years and get the xAGF governance token which gives holders time-weighted yield boost and voting power.
Holding xAGF gives 4x yield boost for active users of the protocol who:
- supply & borrow assets
- stake agTokens (Augmented Finance’s interest-bearing tokens)
- provide liquidity for AGF/ETH Uniswap pool
The general idea is that users who lock AGF and actively use the protocol will get the maximum yield 🚀
2. Automatic Yield Maximization. Users will be able to claim and lock AGF in a single transaction and automate locking of AGF, to save time and gas costs, and earn even more AGF with zero hassle 🔥
3. AGF Listing on Uniswap. We will launch AGF/ETH pool on Uniswap 🦄 with generous AGF incentives for intialDone pool liquidity providers to quickly build a large liquidity pool; Sushiswap and other exchanges to be added later 😍
We tested various scenarios for the Augmented Finance (AGF) tokenomics to understand how we can best deliver value to the community. By rewarding behaviour which strengthens the protocol and increases liquidity, we have created a sustainable tokenomics that will ensure longevity for Augmented Finance.
Learn more about the new Augmented Finance (AGF) tokenomics here: http://docs.augmented.finance/
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