First Milestones for Increment
Community Newsletter #3: October 2021
We achieved several milestones in October, which includes organizing our first community event on Discord and distributing our first POAPs to all participants. Congrats to smileyyy face#3939 for earning first place at the event and taking home the hardware! Although the protocol is still in very early stages, we were really happy to see our Discord community increase to over 60 members and on Twitter, we surpassed 100 followers.
In terms of fundraising, we’ve received the first contributions from our investors and hope to wrap up our private round soon. On the development side, we will be working with Deep Work Studio on designing the UI/UX of the protocol. New designs and branding releasing soon.
We’re hiring! If you are interested in jamming with us, please apply to our open positions here.
In the past 2-3 years, protocols relied on users to provide liquidity through a mechanism called “liquidity mining”, which involves rewarding a protocol’s native token to users in exchange for their supplied assets that the protocol uses to facilitate trades. However, this is only a temporary solution and rewards will eventually run out, which present many problems including rewards decreasing and rug pulls by whales. Referencing the chart below, a project called Big Data Protocol attracted over $6B in total value locked during a six-day liquidity mining program only to fall to a current level of only $3.1M, according to DeBank.
To solve this problem, projects like OlympusDAO are experimenting with a concept called protocol controlled value or (PCV), which entails projects to utilize funds through DAO treasuries, other protocols, and insurance funds to meet their liquidity requirements, rather than solely depending on users’ funds. Another example is Perpetual Protocol V2, which is also moving in this direction as the protocol will be integrating with several liquidity management or asset management platforms.
We hope to join this emerging movement of PCV in order to provide efficient liquidity and rewarding yields for our users. In late November, we will also be presenting at Kernel Block IV’s showcase in front of many industry leaders. Last but not least, we have several strategic integrations lined up with industry leading protocols such Aave, Curve, Chainlink and more, further details coming soon.
Increment is a distributed, algorithmic exchange rate protocol building on zkSync 2.0, empowering open finance for non-USD participants in DeFi.