The Republic Protocol, a decentralized asset exchange, announced plans to pay out dividends to users through Avalanche Blockchain, a proof-of-stake blockchain.
The plan entails paying dividends to users of the Republic Protocol’s Ethereum-based DEX system for their contributions to liquidity mining and interacting with the platform. The Avalanche blockchain will enable Republic to periodically pay out user rewards without requiring users to continuously interact with the platform. In addition to improving engagement and user participation, the move is expected to reduce costs associated with the Ethereum blockchain.
The dividends will come from the Avalanche Anj crowdfunding platform, which allows developers to issue new Avalanche tokens (AVAX), raise funds for different projects, and allow users to trade these tokens. A portion of the funds raised through Anj will be made available for Republic Protocol to use for its dividend distribution.
In addition to helping reduce costs and improve user engagement, the payout of dividends on Avalanche is expected to foster more collaboration between the two blockchains. This could be beneficial in a variety of ways, such as for developing interoperability and allowing users to move funds between the two blockchains.
Ultimately, the partnership between Republic and Avalanche could help create a more vibrant and active decentralized finance (DeFi) ecosystem, which could prove beneficial to both platforms.