Step Finance, a decentralized finance protocol based on the Solana network, has announced the launch of an incentive program dubbed Rewards Options. This reward mechanism will be different from the crypto airdrops done to reward existing users.
The Rewards Options program will involve the 12,000 users on Step Finance. The company noted that the rewards will be distributed among these users.
Step Finance’s unique airdrop
Step Finance is the first crypto project that will be rewarding its users using call options. Step Finance is among the first DeFi projects on the Solana blockchain. It has also positioned itself as one of the leading protocols in the cryptocurrency market.
In a recent announcement, the protocol noted that it was planning to reward the 12,000 users on the protocol. However, it would not use the traditional airdrop used by other projects. The traditional airdrop model usually distributes tokens to selected users. However, according to Step Finance, this traditional airdrop affects the community more, as some users dispose of these tokens to the market, affecting the prices.
Step Finance is stepping in to solve this problem. The Rewards Options initiative seeks to distribute a call options airdrop, the first in the industry. The incentive ensures that users of Step’s AMM can buy STEP tokens at a fixed price, reducing the chances of prices being hurt when a user dumps the tokens in the market.
Rewards Options program holds major benefits for Step Finance
This program holds major benefits for the productive users on the platform. The users will receive rewards that give them a chance to buy tokens from the platform, which creates a Protocol Owned Liquidity (PoL).
The protocol is also planning to create a better feedback collection mechanism using this program, and swappers will receive incentives on the Step AMM. As the Step AMM records a high number of swaps, the annual percentage yield (APY) for liquidity providers will also increase. This will boost the protocol’s total value locked (TVL). All this will be happening as users on the platform receive incentives and continue to interact with the Solana network.
“The Reward Option adds a new layer ecosystem and benefits AMM swappers, STEP token holders, LPs, and the community at large. Through this new protocol, STEP is setting the agenda for the future of DeFi – moving away from the airdrop models and into this productive reward model,” said the co-founder of Step Finance, George Harrap.
As aforementioned, STEP Finance wants to ensure this airdrop does not hurt token holders. To achieve this, the protocol has stated that the options will be issued every five days and expire after five days. Their value will be determined by the strike price, calculated by a given percentage above the spot price of STEP tokens.
On this, Harrap noted that “In its full effect, the Reward Options will also benefit stakers and LPs as new coins only enter the circulating supply in a bull market and in a bear market there is no new coin issuance, reducing the sell pressure experienced by holders.”
According to Step Finance, this mechanism will boost price stability and ensure the community is not affected by dump problems plaguing other airdrop initiatives.
To learn more about this token visit our Investing in Solana guide.
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