In recent weeks, Swell and Euler have joined forces to launch exciting incentive campaigns aimed at boosting user engagement on Swellchain. In this article, we’ll dive deep into these campaigns, their effectiveness, and the tangible benefits users can gain.
Recent Incentive Campaigns
The most recent initiative has allocated approximately 1300 rEUL ($10,000) and 2.4 million wSWELL tokens ($20,000) as incentives specifically for users lending WETH over the past two weeks.
But that's not all—users can further enhance their rewards through a manual "looping" strategy, essentially compounding their returns by repeatedly lending and borrowing assets.
Simplifying the Loop Strategy
While looping manually can significantly increase returns, it can also be quite complex for average users. However, Euler has simplified this with their user-friendly "Strategies" tool available here:
With just one click, users can effortlessly apply looping strategies multiple times, enhancing their rewards significantly. For instance, by lending WETH in the WETH/rUSDC strategy, you could potentially achieve up to an incredible 205% APY. This substantial yield is boosted even further by the incentives provided by rEUL and wSWELL tokens.
However, users should be mindful of the liquidation price and health factor (a safety metric indicating the risk level of your borrowed positions). You can easily track and manage these through Euler's dashboard.
For those seeking a simpler approach without leveraging, simply lending WETH on Euler within Swellchain still yields a substantial 8.96% APY.
Impact of the Campaigns on Euler’s Economic Health
On April 7, Swell officially introduced Euler's strategies, significantly transforming Euler’s economic landscape on Swellchain.
Since then, Euler's Total Value Locked (TVL)—a critical metric indicating total assets deposited—has soared by over 77%, reaching a robust $13 million. With the continuation and expansion of these incentive campaigns, this figure is expected to rise further.
Yet the positive outcomes don't stop there. Another critical metric, the amount of tokens borrowed, has surged by 158%, jumping to $6.3 million. This remarkable growth indicates increased user confidence and participation.
The combined effect of these developments has propelled Euler’s utilization rate—the ratio of borrowed assets to total available assets—from 33% to a healthy 50%. A higher utilization rate typically signals a thriving economic environment, reflecting greater asset efficiency and profitability within Euler's ecosystem.
Concluding Insights
From just these fundamental metrics, it's clear that Swell and Euler’s collaborative incentive campaigns have not only been effective but warmly received by the community. The strategies introduced have significantly boosted user participation, enhanced economic activity, and improved overall platform health.
Whether you're an advanced user keen to optimize your returns or a beginner looking for straightforward yield opportunities, Euler's integration with Swellchain presents compelling and profitable possibilities worth exploring.
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