The Boba Network, the L2 (layer 2) extension layer of Ethereum, announced the launch of the so-called “Wagmi” option as a way to incentivize builders and supporters to invest in the project. Incentive plans will be distributed among different projects on the chain and will be based on various indicators, such as active wallets and total value lock-in (TVL) of specific projects.

Wagmi option as an incentive to build on Boba

Boba Network is an Ethereum L2 (layer 2) solution based on optimism, with Announce Use Wagmi options to initiate a reward plan. According to the Boba team, these options will be different solutions from those previously tried by other chains. With the Wagmi option, which will depend on network parameters, such as locked total value (TVL) or the development of a particular project, the team hopes to maintain momentum within its network.

In response, the Tibetan team explained:

Traditional liquid mining procedures are zero-sum: users come to collect high rewards and are motivated to maintain these rewards. WAGMI Agriculture has changed this model by actively seeking summaries: incentivizing users to spread and encourage the behavior of cultivating Boba.

These options will come in different versions and will be adopted by several applications that include them in the coming weeks.

Liquidity incentives

There are several chains that try to incentivize builders and developers to build applications on their chains. Avalanche, Harmony, Cardano, and BSC are just some of the participants in the market that apply this technology to increase activity and bring users into their chain, and produce different results.Boba Network seek Turn it into a “positive and sustainable mechanism.”

Boba’s main network went live in September last year and successfully jumped to one of the leading L2 networks, ranking second in TVL on November 28, second only to Arbitrum.However, since then, the network has lost some momentum and fell to fourth place while being surpassed by Loopring. Dadex, according to Information to L2beat, L2 statistics monitor.

The team behind the plan stated that this will be the first time option farming has been implemented in any network, and they hope that the plan will also establish a trend for other projects to use options to better distribute incentives.

What do you think of Boba Network’s Wagmi incentive plan? Tell us in the comments section below.

Sergio Goshenko

Sergio is a cryptocurrency journalist based in Venezuela. He described himself late and entered the crypto space when prices rose in December 2017. With a background in computer engineering, living in Venezuela, and being affected by the cryptocurrency boom at the social level, he offers a different perspective on the success of cryptography and how it can help people without bank accounts and underserved people.

Image Source: Shutterstock, Pixabay, Wikimedia Commons