Open Liquidity Provision to Enhance Cross-Chain Liquidity and Trading Volume

Governance
1

Open Liquidity Provision to Enhance Cross-Chain Liquidity and Trading Volume

Proposer: MAP Protocol Foundation
Date: 28/01/2026

Timeline

The voting period for this proposal will end on 02/02/2026.

Background

As MAP Protocol continues to expand its omnichain infrastructure, liquidity depth and cross-chain capital efficiency have become increasingly critical to ecosystem growth.

Currently, limited liquidity access across chains can constrain:

  • Cross-chain trading activity
  • User participation and retention
  • Capital inflows into the MAP ecosystem

To address these challenges, the MAP Protocol Foundation proposes a full opening of liquidity provision across supported chains. This initiative is designed to attract broader participation from liquidity providers (LPs), improve cross-chain liquidity availability, and significantly increase overall trading volume.

By lowering barriers to entry and introducing competitive, usage-oriented incentives, this proposal aims to strengthen MAP Protocol’s position as a high-liquidity, high-efficiency omnichain infrastructure layer.

Proposal Details

The MAP Protocol Foundation proposes to fully open liquidity provision across supported chains, with the following components:

1. Open Access to Liquidity Provision

  • Liquidity pools will be opened to all eligible users without restrictive caps or whitelist limitations.

  • Participants will be able to freely add liquidity across supported cross-chain markets within the MAP ecosystem.

  • This open-access model is intended to encourage broader community participation and deeper liquidity formation.

2. Incentive Mechanism (APY)

  • An initial target APY of up to approximately 66.04% will be used as a liquidity bootstrapping reference to attract early participation and accelerate cross-chain trading activity.

  • Rewards will be distributed in $USDT, calculated based on liquidity contribution and participation duration.

  • APY levels are not fixed and may be dynamically adjusted over time based on:

    • Liquidity depth

    • Cross-chain trading volume

    • Protocol revenue and sustainability considerations

  • Any significant adjustments to incentive parameters will remain transparent and subject to governance oversight.

3. Cross-Chain Liquidity Enhancement

  • Liquidity provided through this initiative will directly support:

    • Cross-chain swaps

    • Omnichain asset transfers

    • Multi-network trading activity

  • Improved liquidity depth is expected to:

    • Reduce slippage

    • Improve price efficiency

    • Enhance overall user trading experience across supported chains

4. Funding Source

  • Liquidity incentives will be funded primarily through governance-approved ecosystem incentive allocations and reward pools.

  • All reward emissions and distributions will be:

    • Transparent

    • Publicly verifiable

    • Tracked on-chain

5. Governance and Transparency

  • All liquidity pools, reward emissions, and APY parameters will be publicly visible and verifiable on-chain.

  • The community, through DAO governance, may participate in decisions related to:

    • APY adjustments

    • Reward duration and emission levels

    • Liquidity pool expansions or optimizations

  • This ensures that liquidity incentives evolve in line with real protocol usage and long-term sustainability.

6. Risk Notice

  • Market conditions, liquidity performance, protocol security considerations, and operational factors may impact execution.

  • If required to protect the long-term health and security of the ecosystem, the MAP Protocol Foundation may propose adjustments, pauses, or termination of this initiative, with timely disclosure to the community and governance where applicable.

Expected Outcomes

1. Increased Cross-Chain Liquidity

Opening liquidity provision with competitive incentives is expected to attract additional capital into the MAP ecosystem, strengthening cross-chain liquidity depth.

2. Higher Trading Volume

Deeper liquidity and reduced slippage are expected to encourage more frequent and larger cross-chain trades, increasing overall protocol transaction volume.

3. Ecosystem Growth and Adoption

Improved liquidity conditions enhance user experience, attract new users and partners, and support sustainable long-term ecosystem expansion.

Conclusion

The MAP Protocol Foundation believes that fully opening liquidity provision is a strategic step toward accelerating cross-chain adoption and trading activity.

By:

  • Enabling open participation

  • Introducing an attractive but adjustable initial APY reference

  • Maintaining transparent, governance-driven incentive management

this proposal aims to build a more liquid, efficient, and competitive omnichain ecosystem for all MAPO stakeholders.

This initiative reflects MAP Protocol’s long-term commitment to scalability, openness, and sustainable growth driven by real usage.

Vote Now
The MAPO community is encouraged to participate in the governance process. Cast your vote on the proposal :point_right:t3: MAPO Governance.