Weft Finance Incentive Programs Documentation

This document provides an overview of the incentive programs that have driven Weft Finance's growth and adoption. These initiatives reflect our commitment to building a decentralized lending and borrowing ecosystem on the Radix DLT. Each program is designed to reward user participation, support liquidity, and encourage early adoption of the platform.

Validator Node Staker Incentive Program

Allocation: 20M $WEFT
Status: Completed
Duration: August 2023 – July 2024

The Validator Node Staker Incentive Program marked the beginning of Weft Finance's journey. Launched alongside our Validator Node on the Radix Public Ledger, this program allocated 20% of WEFT tokens to stakers, fostering network security and decentralization.

Distribution Details:

1. First 6 Months (100% Staking Fees):
   • Distributed 15M $WEFT, constituting 75% of the total allocation.
2. Subsequent 6 Months (25% Staking Fees):
   • Distributed the remaining 5M $WEFT, concluding the staking rewards program.
3. Ongoing (1% Staking Fees):
   • From August 2024, the validator fee rate was set at 1%, ensuring sustainable staking operations.

Impact:

• Strengthened the decentralization and security of the Radix network.
• Encouraged early staker participation through attractive rewards.

Validator Node Details

Liquidity Mining Program

Allocation: 20M $WEFT
Status: Completed
Duration: September 2023 – August 2024

This program aimed to bootstrap liquidity and enhance trading activity for $WEFT tokens on decentralized exchanges (DEXs).

Distribution Details:

• Supported Pools:
  • Ociswap WEFT/XRD Pool
  • DefiPlaza WEFT/DFP2 Pool

Impact:

• Improved liquidity for $WEFT tokens, promoting a healthier ecosystem.
• Encouraged active user participation by incentivizing liquidity provision.

Weft V1 Stablecoin Lenders & Borrowers Incentives

Allocation: 7.5M $WEFT (Lenders) & 3.5M $WEFT (Borrowers)
Status: Completed
Duration: December 2023 – July 2024

This initiative rewarded early adopters of the Weft V1 lending platform.

Distribution Details:

1. Lenders Incentives:
   • 7M $WEFT distributed at 1,400 $WEFT/hour.
   • Focused on stablecoin lenders.
2. Borrowers Incentives:
   • 3M $WEFT distributed at 600 $WEFT/hour.

Impact:

• Incentivized early adoption of the lending platform.
• Balanced rewards for both lenders and borrowers to ensure a vibrant market.

WEFT Staking Boost

Allocation: 4.7M $WEFT
Status: Completed
Duration: April 2024 – November 2024

The WEFT Staking Boost program offered stakers a share of lending fees and rewards in $WEFT token.

Distribution Details:

• Incentivize WEFT staking while the next version release was progressing
• Weft V1 Lending fees were added to staking rewards to increase value for participants.

Impact:

• Enhanced staking rewards and incentivize participation in WEFT Staking
• Reinforced $WEFT’s utility and incentivize long-term holding.

Weft V2 Lenders Incentive Program

Allocation: 6M $WEFT
Status: Upcoming
Duration: December 2024 – December 2025

This upcoming program aims to enhance participation in Weft V2 by incentivizing deposits of $XRD, $USDC, and $USDT.

Distribution Details:

• Eligible Assets: $XRD, $xUSDC, and $xUSDT.
• Deposit Weighting: Deposits in $USDC and $USDT will count 3x compared to $XRD.
• Minimum Deposit: $50 (in equivalent asset value).
• Snapshots will be made hourly and individual allocations will be sent daily
• Rewards distributed starting December 2, 2024.

Impact:

• Encourages diversified asset deposits, enhancing platform stability.
• Supports Weft Finance’s roadmap for sustainable growth.