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When markets are strong, as they were from January to May 2021 when the TVL of Polygon increased from $10 million to $10 billion as a result of the positive feedback loop of the initial LM campaign, liquidity mining produces a snowball effect.

The Polygon LM 2.0 Incentive program is temporarily disabled.

The last phase of DeFi For All had begun with a $15 million campaign by Polygon back in February. The creation of dApps on the Polygon PoS Chain was sped up by these MATIC prizes, which would be dispersed over the following six months. The next phase for the DeFi ecosystem, Liquidity Mining 2.0, was one of their most significant launches during this campaign.

Decentralized applications (DApps) must have fulfilled two requirements in order to take part in Polygon's LM 2.0.

They must have never received LM tokens from Polygon, to start with. After then, they must be installed on the Polygon network.

However, the program also accepted DApps hosted on other networks. The only requirement is that they were meeting the established performance criteria within a month of being deployed on Polygon. Additionally, initiatives using anonymous teams were permitted to participate if they give a multi-signature address that can be independently verified by the public.
Every month, a distribution evaluation was conducted in order to recognize the top-performing DApps. The latter then chose how to use the incentives received independently.

This campaign incentivised a lot of projects, with rewards in MATIC up to 1$ million each.

When markets are strong, as they were from January to May 2021 when the TVL of Polygon increased from $10 million to $10 billion as a result of the positive feedback loop of the initial LM campaign, liquidity mining produces a snowball effect.

Due to the state of the market, Polygon informed their users that they had decided to temporarily halt the LM 2.0 campaign. The snapshots for June will continue to be taken, and once the campaign picks back up, the final list of eligible dAPPs will receive their pending PLM airdrop for the month of June. On July 1st, the qualified dAPPs for June will be revealed.

The Polygon devs had done a tremendous job helping new and onboarding projects find success on this Eco Friendly, low gas-fee Blockchain. They will continue offering incentives spread over the next months and years once the market conditions brighten.

Written By

Petrache Ionut

Jun 27, 2022