Provide Uniswap liquidity, earn LIT rewards
Launch appMost liquidity providers lose money.
Swap fees are usually not enough to offset the Impermanent Loss, especially for concentrated & passive liquidity.
This makes it hard to bootstrap liquidity for an asset without token incentives.
Many projects utilize token incentives to rent liquidity for protocol assets, but naive incentive schemes are unsustainable.
The liquidity attracted is mercenary, meaning it will evaporate as soon as the incentives run out.
Bunni incentivizes liquidity using the Liquidity Incentive Token (LIT) via an improved vetokenomics system.
The improvements disincentivize farming-and-dumping and encourage long-term liquidity provision by aligning the interests between LPs and LIT holders.
Learn more about it here.
By incentivizing concentrated liquidity, Bunni can attract liquidity with much higher capital efficiency versus other platforms.
Moreover, projects can get further efficiency boosts from the vetokenomics. Hold veLIT in your project's treasury to direct LIT incentives instead of paying rent to farmers. Or give incentives to veLIT holders to convince them to vote your way.