Launching LSPO to Strengthen EMP Token Liquidity

 

As we approach the end of our liquidity drive at the conclusion of EPOCH 550, we want to extend a heartfelt thank you to everyone who has participated in supporting the growth and stability of the EMP token. Your contributions have played a vital role in laying the foundation for the next phase of our journey.

With significant progress being made on the ground, we anticipate a growing demand for EMP tokens from developers utilizing them as collateral. For a refresher on how EMP is used to collateralize loans, watch this video: EMP Collateralization. You can also track our progress here: NSE Catalyst Project.

To ensure ongoing liquidity and support this anticipated demand, we are excited to announce the launch of our Liquidity Stake Pool Offering (LSPO).

What is an LSPO?

For those unfamiliar with the concept, an LSPO (Liquidity Stake Pool Offering) is similar to an ISPO (Initial Stake Pool Offering). However, instead of distributing rewards to participants, all ADA earnings from the LSPO will be used to enhance EMP token liquidity.

This is made possible by Cardano’s native liquid staking, which allows participants to delegate their ADA to Empowa’s LSPO pool. Instead of earning traditional ADA rewards, participants will receive EMP tokens at a discounted rate in return for their contribution to the liquidity ecosystem.

Why is This Important?

By incentivizing liquidity provision, the LSPO will:

  • Deepen liquidity across exchanges, ensuring more efficient EMP trading.
  • Reduce price volatility, making the token more attractive to investors and users.
  • Improve market efficiency, enhancing the viability and accessibility of EMP

Key LSPO Details:

  • Duration: The below structure of the LSPO will run for six months. At this time we reserve the right to reconsider factors like which pools we provide liquidity to, the EMP to ADA rate used, and the decision to provide only ADA to the pool.
  • Liquidity Target: All liquidity generated will be allocated exclusively to the Minswap EMP-ADA V2 pool (ID: f5808c2c990d86da54bfc97d89cee6efa20cd8461616359478d96b4c), ensuring depth on Cardano’s largest decentralized exchange (DEX).
  • 100% Allocation: All ADA rewards will be allocated to liquidity enhancement.
  • ZAP Mechanism: We will ZAP in the ADA, ensuring each contribution effectively purchases EMP tokens, driving demand.
  • Token Source: EMP tokens used in the LSPO will come from unsold tokens from our token sale and our operating fund.
  • Lock-Up Period: Earned EMP tokens will have a 6-month lock-up period.
  • Stake Pool ID: EMPL
  • Transparency: All rewards will be directed to wallet $EMP.LSPO, making fund tracking simple and transparent.
  • Project Commitment: To kickstart the LSPO, Empowa has pledged 50,000 ADA at the creation of the pool.
  • Active Stake: rewards are paid based on active stakes ADA. 
  • Reward Rate: Participants will receive 1 EMP for every 0.04 ADA worth of rewards forfeited, offering a 20% discount on the current market rate of EMP.

     

    Here is a illustrative example: if you stake 10 000 ADA and we assume a 2% APY stake pool reward. Then at the end of the year you would have earned 200 ADA. In the LSPO we would retain the 200 ADA and add that to the liquidity pool and in return reward you with 5 000 EMP. If you attempted to buy 200 ADA’s worth of EMP on the open market currently you would receive 4 000, without accounting for any price impact. 

How to Participate

To support liquidity provision and earn EMP at a discount, simply delegate your ADA to EMPL. By doing so, you contribute directly to the strength and sustainability of the EMP token ecosystem.

We appreciate your continued support and look forward to building a more liquid and resilient EMP token economy together!

Join the LSPO Today! For any questions, reach out to us on our community channels:

This initiative marks a significant step in our mission to revolutionize affordable housing finance using blockchain. By participating in the LSPO, you not only support the growth of Empowa but also position yourself to benefit from the long-term success of the ecosystem. Let’s build together!