LP Utility

To trigger ARS emissions on both deposits and borrows, you must lock at least 5% of your deposit's USD value in LP tokens.
Example 1 : If you deposit $1M USDC but have zero LP tokens locked, you will earn the basic APY but won't qualify for additional ARS emissions.
Example 2 : Deposit $1,000 USDC and lock $50 in LP tokens. Now you're eligible for ARS emissions, thanks to hitting that 5% threshold.
The requirement to lock liquidity tokens in LP form serves the AquariusLoan money market in multiple ways:
  1. 1.
    Long-Term Participation : Locking LP tokens effectively commits users to a set period, increasing the likelihood that they'll maintain their deposited collateral.
  2. 2.
    ARS Emissions Activation : This commitment enables ARS emissions, rewarding those who are invested in the protocol's long-term vision.
  3. 3.
    Attracting New Users : The above dynamics make the AquariusLoan money market mode appealing to potential liquidity providers, thereby stimulating both growth and development.
This strategic cycle not only sustains long-term liquidity but also catalyzes new inflows, making it a win-win for both individual users and the protocol at large.