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Extra Finance, an Optimism-based leverage yield aggregator protocol, announces its incentive plan.

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Initially, the focus will be on incentivizing liquidity. During the first week, users who deposit USDC will receive additional EXTRA liquidity incentives.

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Extra Finance is a community-driven leveraged yield aggregation protocol built on the Optimism ecosystem. Extra Finance empowers users to participate in various mining pools on Velodrome and other decentralized trading platforms and earn higher returns by providing 3x or higher leverage and a range of customized yield strategies. In early May, Extra Finance was launched on the Optimism mainnet. As of early June, Extra Finance's TVL has exceeded $2 million.

Before the mainnet launch, Extra Finance announced its Token Economics. The total supply of EXTRA is 1 billion, using the veToken model. EXTRA holders can vote to stake their tokens and receive veEXTRA, which entitles them to APR rewards, voting rights, priority unlocking of higher leverage multiples, and other product features.

This week, Extra Finance announced that it will launch the EXTRA incentive program on June 15th, focusing initially on incentivizing liquidity and committing to the long-term prosperity and sustainable development of its protocol. In the first week, users who deposit USDC can receive additional EXTRA liquidity incentives, with a total incentive pool of 1 million EXTRA tokens.

Why choose a long-term liquidity incentive plan?

During the development of Extra Finance, the utilization rate of the USDC pool has exceeded 60% and has been maintained at a high level for a long time. This indicates that its protocol provides a certain level of market competitiveness in terms of APY, attracting many leveraged income enthusiasts. On the other hand, it also shows the lack of liquidity. Through a long-term liquidity incentive plan, Extra Finance can increase the availability of leveraged assets and provide more passive income opportunities for asset providers.

In addition to the original borrowing and lending APY, extra incentives are distributed in the form of tokens, which can not only effectively reward users for their valuable contributions to liquidity, but also help the protocol maintain loyal participants and strengthen the ecosystem construction.

Liquidity Incentive Plan

Extra Finance liquidity incentive plan initially focuses on the lending pool, and will be adjusted according to the operation of the protocol in the later stage.

The initial incentive will last for one month, and the agreement will have a weekly recursive incentive plan. The liquidity incentive will start at 8:00 on June 15th. In the first week, users who deposit USDC can share the additional EXTRA liquidity incentive pool with a total of 1 million tokens.

Currently, Extra Finance has started collecting proposals for follow-up incentive directions in the community. It is expected that all lending pools except USDC will be opened one after another.

Once the liquidity incentive is activated, users can start accumulating and claiming EXTRA rewards.

In addition, Extra Finance has already clearly stated in its Token Economics that it will distribute airdrops to early project participants, community members, and other leverage enthusiasts. They have also made it clear that the airdrop will soon be open for application.