XIP #19: Kamino S2 LP Program

This XBorg Improvement Proposal suggests launching a new incentive program on Kamino Finance to reward liquidity providers on the Solana network.

• If accepted, XBorg will establish a vault on Kamino Finance, allocating 1 million XBG tokens as incentives for liquidity providers in the XBG/SOL trading pair. The vault is set to open on October 18th and will remain active for 60 days.
• If rejected, the core team will engage with the community to gather feedback and adjust the proposal accordingly.

Context

Recently, we have seen a significant increase in the trading volume of the $XBG token, with over 50% of transactions occurring on the XBG/SOL pair. We aim to incentivise investors to provide liquidity on this pair to ensure healthy price dynamics.

Since we cannot yet incentivise liquidity providers via the XBG Reward Program, we propose allocating 1 million XBG tokens as rewards for participants who provide liquidity over the next 60 days via the Kamino platform.

About Kamino Finance

Kamino Finance is a DeFi platform that offers various products, including vaults, where liquidity providers can earn rewards.

Benefits

Increased liquidity will result in healthier price action for the $XBG token and make it more attractive to larger investors.

• Kamino will promote the vault on their socials and platform, thus increasing awareness of the token.
• This incentive program will attract new investors, many of whom may initially participate solely to benefit from the program but could become long-term token holders.

Risks

• Allocating 1 million tokens as incentives will create additional sell pressure on the market.
• If participation is low, the APY will be high for a few participants, which could lead to a poor return on the tokens spent.