<aside> ⚠️ This framework is in active development. To participate in the discussion, feel free to join the Mangata Discord


This framework describes the considerations that shall be followed when deciding on updating pool weights. It is a living document and will be updated as we gain a deeper understanding.


The goals of incentivizing liquidity are to:

All incentive decisions must be considered with respect to these goals.


Incentivizing liquidity on Mangata X has to consider different factors. For now, we consider the following factors:

Relative Distribution of Liquidity in Different Pools

The simplest idea to consider is that incentives should grow with the size of the pool. The bigger the pool, the more MGX should go there.

Following this idea would lead to an equal distribution of the APR on all the pools.

Strategic Importance of Growing Liquidity in a Pool

Different user groups prefer different tokens and pairs. As such, we need to consider how much tokens and pools add strategic value to the development of liquidity on the DEX.

Strategic Considerations

To incentivize or to not incentivize?

Not every token and pair needs to be incentivized. On the contrary, incentivizing too many tokens and pools too quickly leads to less concentrated incentives, which can be highly detrimental at the initial stages of the exchange.

Arguments for: