The following Post aims to establish a set of Guidelines in order to qualify for a MIN Farm. Minswap is growing, and as such, many upcoming projects building in Cardano are interested in having a MIN Farm. This benefits both Minswap, which becomes the de facto place to trade new and promising tokens, and the projects as well, which can attract/bootstrap liquidity easier towards their native token.
However, MIN Yield Farming rewards ought to be allocated wisely, essentially, every MIN we spend on Yield Farming represents a cost to the protocol, and it should be allocated in such a way that it maximizes the revenue of the protocol (which means swap fees/volume) as well as TVL. Luckily, our Yield Farming system allows for the constant tweaking of Points, and as such Farms (especially new ones) ought to be regularly monitored to assure the MIN is being spent wisely.
1. The project that wants to apply for a Farm should to do a Proposal on the Minswap Forum. In this proposal, the following points have to be addressed:
1.1 Please describe your project. What is it doing to improve Cardano?
1.2 What does the Token do? How many holders does it currently have?
1.3. Why do you want a MIN Farm? How does the Minswap community benefit from offering a MIN Farm for your Token? Apart from the MIN Farm, will you add your own Token as incentives as well (Double Farm) If yes, how much?
1.4. How much circulating supply is there of your token? Please inform us briefly on your tokenomics, including the distribution and vesting schedule of the token (investors, team, yield farming, etc.)
1.5. Is your Project audited? By whom?
2. Minimum TVL: currently, the pair with lowest incentives (HOSKY) has 600k ADA TVL. It might make sense to ask projects for a minimum TVL of 700k - 800k ADA before any kind of incentives. We do not want TVL to exclusively be related to the MIN Farm.
3. Minimum Time Traded: it might be better to have a period of let’s say 2-4 weeks, where we let the token trade without any kind of incentives. We do not want the fact that there is a MIN Farm be the main driver of a token being traded.
4. Governance: Please include a non-binding poll in your Proposal in the Forum, with the title “Should (include the token name) have a MIN Farm?” and 2 options: “Yes, in favor” and “No, do not add this Farm”. This poll should have a majority vote yes. In addition, each Farm addition should pass a vote on the Kitty Farmer Committee with 2/3rds in favor in the Kitty Farmer Committee before being added.
New Farms may be added and removed every month. These vote-requiring policies will be redone when on-chain governance is available later this summer.