Boba Network, an L2 (layer 2) expansion layer for Ethereum, has announced the launch of what it calls “Wagmi” options as a way of incentivizing builders and supporters to be invested in the project. The incentive programs will be distributed amongst different projects on the chain and will be based on various indicators such as active wallets and project-specific total value locked (TVL).
Wagmi Options to Serve as Incentives for Building on Boba
Boba Network, an optimism-based L2 (layer 2) solution for Ethereum, has announced the launch of an incentives program using Wagmi options. These options, according to the Boba team, will be a different solution from what other chains have tried before. With Wagmi options, which will depend on network parameters such as total value locked (TVL), or specific project developments, the team hopes to keep the momentum going inside of its network.
On this, the Boba team explained:
Traditional liquidity mining programs are zero-sum: users come to collect high rewards and are incentivized to keep those rewards. WAGMI farming turns this model on its head by being positive sum: users are incentivized to evangelize and encourage behaviors that grow Boba.
These options will have different versions and are to be adopted by several projects that apply to include them in the coming weeks.
Liquidity Incentives
Several chains have tried to incentivize builders and developers to construct apps on top of their chains. Avalanche, Harmony, Cardano, and BSC are just some of the players in the market that have applied this technique to increase activity and bring users to their chains, with different results. Boba Network seeks to turn this into a “positive-sum, sustainable mechanism.”
Boba’s mainnet was launched in September last year, and it managed to rise as one of the leading L2 networks, reaching the second spot in TVL among these on November 28, only behind Arbitrum. However, since then, the network has lost some steam, falling to fourth place while being surpassed by Loopring and Dydx, according to the info at L2beat, an L2 statistics monitor.
The team behind this initiative states this will be the first time that options farming is implemented in any network and that they hope this initiative could also set a trend for other projects to take advantage of options to better distribute incentives.
What do you think about Boba Network’s Wagmi incentives program? Tell us in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
