- The MuesilSwap Twitter handle provides information about the latest Cardano feature.
A decentralized exchange Cardano recently introduced a new feature to collect liquidity known as “organic APR”. The feature increases token issuance as more liquidity enters the pool.
According to a Twitter post from MuesliSwap’s official account, it is noted that it will launch on December 8, 2022 in a single pool and later launch on several others.
We have developed something special for you! Organic APR 🌿🧑🌾
We present the organic annual percentage rate in one sentence:
The more people contribute to a pool, the higher the APR 💰📈
why do we need it And how would that work? See this thread for more information. 👇
— MuesliSwap (@MuesliSwapTeam) December 6, 2022
Many Cardano users really appreciate Cardano’s recently launched feature, but on the other hand, several other crypto enthusiasts have expressed their dissatisfaction with it.
The core member of the development team noted that the APR is mandatory because without it, users could not be incentivized to engage in the exchange; The MuesliSwap team further quoted: “Users want to provide liquidity to earn rewards. But more liquidity providers mean earning a smaller fraction of the issuance. Consequently, there is no incentive to spread the word and onboard more users. They will only reduce the APR for early adopters.”
One Cardano user praised the recently launched Decentralized Exchange feature in a Twitter post, calling it a “cool innovation” and another called it “awesome”.
We have developed something special for you! Organic APR 🌿🧑🌾
We present the organic annual percentage rate in one sentence:
The more people contribute to a pool, the higher the APR 💰📈
why do we need it And how would that work? See this thread for more information. 👇
— MuesliSwap (@MuesliSwapTeam) December 6, 2022
The team also noted in the Twitter thread that traditional yield farming works as follows: “Agriculture-interested DEX sets yield farming token issuance schedule”, “Yield farming participants receive a share of the tokens issued, proportionally to their share of the liquidity employed.”
“There is a big problem that users want to provide liquidity to earn rewards, but more liquidity providers means earning a smaller portion of emissions. Consequently, there is no incentive to spread the word and engage more users. They will only reduce the APR for early adopters.”
On November 30, 2022, Charles Hoskinson, founder of Cardano, spoke about the recent development of the stablecoin project Ardana. It has been reported that the stablecoin project based on the Cardano blockchain network is ceasing operations.
Hoskinson stepped forward and explained the problems that ended the project. Hoskinson was among the early investors in the stablecoin project, and in the latest video, he seemed quite dissatisfied with it. He said his investment looked like it was wasted.
In a tweet for his community, Ardana mentioned recent funding developments and the unpredictability of the project development schedule. The operation of the Ardana project was then discontinued. However, the developers promised that the code would remain open source and open for developers to work on.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while in college. He is a keen eye for detail and shares his passion for writing with his work as a developer. His backend knowledge of blockchain helps bring a unique perspective to his writing
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