Proposal: MAP Protocol Liquidity Provider – Vault Capacity Expansion

MAP Protocol Liquidity Provider – Vault Capacity Expansion

Proposer: MAP Protocol Foundation
Date: 18/12/2025


Timeline

The voting period for this proposal will end on 23/12/2025.


Background

Following the launch of MAPO 2.0, MAP Protocol introduced its initial USDT Vault liquidity rollout to support omnichain swap activity and enable community members to earn yield derived from real cross-chain protocol fees.

The initial rollout demonstrated strong on-chain activity and stable fee generation, validating the protocol’s volume-driven liquidity model. As cross-chain usage continues to grow, expanding Vault capacity is necessary to support higher transaction throughput, deeper liquidity, and improved execution across supported chains.


Proposal Overview

The MAP Protocol Foundation proposes to expand the capacity of the USDT Vault to accommodate increased cross-chain activity.

This proposal increases total Vault liquidity capacity while maintaining the same economic structure, fee model, and risk parameters defined under MAPO 2.0. No changes are proposed to Vault mechanics or fee allocation logic.


Proposed Changes

Vault Capacity Expansion

  • Previous TVL Cap: 105,000 USDT
  • New TVL Cap: 210,000 USDT

Key Parameters

  • Asset: USDT (single-asset Vault)

  • Lock-up: None (deposit and withdraw anytime)

  • Yield Source: Cross-chain protocol fees (no token emissions)

  • Estimated APY: ~100% (volume-driven, non-fixed)


Economic Rationale

Under MAPO 2.0, Vault yield is directly linked to real network usage:

  • Cross-chain swaps generate protocol fees

  • A portion of these fees is allocated to Vault liquidity providers

  • As Vault TVL increases, APY naturally adjusts based on fee distribution

Expanding Vault capacity allows MAP Protocol to:

  • Support higher cross-chain transaction volumes

  • Improve swap execution quality and liquidity depth

  • Maintain a sustainable, market-driven yield model

As liquidity deepens, APY is expected to normalize — reflecting a healthier and more scalable economic system.


Transparency & Risk Disclosure

  • All Vault fee generation and distributions are executed on-chain via smart contracts
  • Yield rates are estimated, not guaranteed, and fluctuate with trading volume
  • Vault parameters may be adjusted prior to full DAO governance activation if required by market conditions or network security considerations

Once MAPO DAO governance is fully live, future Vault parameters and capacity changes will be determined through community governance voting.


Conclusion

This Vault capacity expansion represents a measured step in MAP Protocol’s liquidity roadmap — prioritizing sustainability, transparency, and real economic activity over short-term incentives.

By scaling liquidity in stages, MAP Protocol continues to build a resilient omnichain infrastructure where fees, liquidity, and long-term value creation remain closely aligned.


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