Expanding the Boost System: Centering Liquidity Around Core Assets
Aquarius governance proposal introduces a tiered boost system for liquidity rewards. AQUA pairs receive a 50% boost (up from 25%), XLM and USDC pairs get 30%, with a 10% total reward cap per pair. The proposal builds on earlier governance efforts and aims to incentivize interconnected markets while reducing isolated, manipulation-prone liquidity pools.
Aquarius governance has proposed a tiered boost system designed to align liquidity rewards with core ecosystem assets. Under the proposal, AQUA pairs receive a 50% boost—increasing from the current 25%—while XLM and USDC pairs receive 30%. All rewards are capped at 10% per pair maximum. This represents an evolution of Proposal #96, which the community supported but that failed to secure sufficient votes.
The system strategically concentrates liquidity around three foundational assets: AQUA as the protocol's native token, XLM as Stellar's network asset, and USDC as the most liquid stablecoin on the ecosystem. Rather than allowing isolated liquidity pools prone to manipulation, the tiered approach incentivizes pairs that bridge across these core assets, creating more interconnected and efficient markets. Boosts are additive but capped at 10% total reward. The proposal removes the previous 5% cap on boost effectiveness, simplifying the reward mechanics while ensuring equitable distribution across all market participants. Future governance proposals may introduce additional tiers based on asset age, liquidity depth, or interoperability features.
