Liquidity Mining (50%)

We want to emphasize that despite the significant allocation to liquidity mining, it's inherently linked to the overall success and growth of our project. This means that emissions of ARA aren't merely an expenditure but a strategic investment into the growth of our platform. As we distribute more ARA, it's expected that the Realized Future Value (RFV) of our treasury will grow in direct proportion. In essence, every ARA token emitted contributes towards fortifying our treasury and consolidating the project's financial stability. This dynamic interplay between ARA emissions and treasury growth forms a virtuous cycle that drives the long-term sustainability and success of our platform. Liquidity Mining emissions are closely tied to the Total Value Locked (TVL) we amass. The ARA token plays a crucial role in "boosting" the yield earned on the base layer. This means the more ARA tokens we emit through liquidity mining, the more tokens we are effectively "blackholing". This is facilitated by taking a fee on the ve boosted base layer yield, which is then replaced by ARA.

Simultaneously, the rapid accumulation or "blackholing" of governance tokens accelerates our ability to leverage the base layer yield boost offered by holding these tokens. This approach allows us to optimize returns and drive liquidity more efficiently.

The liquidity mining program accounts for 50% of ARA token supply and is made up of three components:

1. aHermes and aMaia Staking

Converting Hermes and Maia is the most important feature of our ecosystem for generating long-term value for ARA. Thus, it is important for us to allocate an adequate portion of our emissions to aHermes and aMaia stakers.

1. AraFi Farms

In the long term, attracting a substantial Total Value Locked (TVL) is crucial for AraFi's success. As the TVL from Hermes and Hummus increases, so will the fees generated by AraFi, which will in turn provide additional value to aHermes, aMaia, and aHum stakers as well as ARA lockers.

1. LP staking (Bribing)

To ensure AraFi’s success, it is crucial to establish liquid capital markets that enable users to enter and exit positions seamlessly. This is particularly relevant for our diverse liquidity pools, comprising aHermes-Metis, aMaia-Maia, and aHum-Hum, which we intend to host on the Hermes platform.