1/ Pumped to announce the $ALEX Yield Round
Playing the long game with my community. 🌾
— Alex Masmej ☄️ (@AlexMasmej) August 3, 2020
Built on Roll, $ALEX was the first personal token to take center stage through his Initial $ALEX Offering in which $20k was raised to select participants in exchange for up to 15% of his income over the next 5 years. While this created a ton of awareness for Alex, one of the biggest issues plaguing both $ALEX and every personal token is secondary market liquidity.
In line with every DeFi token, the primary market to trade $ALEX is Uniswap. However, liquidity tends to be scarce due to people being more long on $ALEX than they are on providing value-added liquidity in exchange for a small sliver of trading fees which incur impermanent loss.
As illustrated in the original article “a 2.5 ETH purchase of $ALEX would have a price impact of over 5%”. To combat this, Alex is now offering incentives to liquidity providers over the course of August 8th – September 8th.
What’s to Know?
Just as with other liquidity mining programs, participants simply need to provide liquidity to this ALEX/ETH Unsiwap pool. Given the early nature of this experiment, LPs will need to remain in the pool for the entirety of the month period to be eligible for rewards.
Alex will allocate 100,000 $ALEX proportionally to eligible LPs via an airdrop at the end of the period. For participants, the experiment is likely to continue with a new reward amount and pool allocations following the first month.
“With the advent of a bull market, pools are getting more competitive from an interest rate perspective,” Masmej told DeFi Rate. “Making sure $ALEX holders get rightly compensated seemed both fair and strategic for the long term health of my token.”
Anyone participating in this program should join the $ALEX permissioned Telegram group, a chat that scans your web3 wallet to ensure you hold at least 1 ALEX to join.
To add more context, this announcement continues the trend of innovative experiments the French Steve Job has incubated included “Control My Life” – an ALEX-based governance poll in which stakeholders voted to have Alex run 5km every day for the past month.
Social Tokens Heat Up
The launch of the $ALEX Yield Round comes in line with a strong surge in interest regarding personal tokens – more recently being branded as social currency. Popularized by Roll, creators of all shapes and sizes are stepping up to tokenize themselves in an attempt to incubate a dedicated community that shares in that creator’s future upside.
Before that, a group called KarmaDAO launched a token – KARMA – which requires users to hold 200 tokens to enter the chat group and gain access to private meetings with early-stage projects showcasing their development. This notion of token-permissioned chat groups then made it’s way to DeFi with the launch of the DeFi Nation Signal DAO and their DSD token.
If the trend wasn’t clear enough, personal tokens are here to stay and we’ve only just scratched the surface of what’s possible in the coming months.
Cooper is the Editor of DeFi Rate and an active contributor to leading DeFi media outlets like The Defiant, DeFi Pulse, and Bankless. He works with early-stage teams through Fire Eyes DAO to incubate governance models and grassroots community development. He is an ambassador to Set Protocol and an author of a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.