🚀 Attention crypto-fans! GameFi blockchain developer Sky Mavis will reduce liquidity provider (LP) rewards by 50% on its DEX Katana, built on the Ronin blockchain. This will occur in two phases: 50% starting March 1 and another 50% in phase 2, representing a total reduction of 75%.

📈 Ronin justifies this measure due to the increase in the average APR in Katana liquidity pools, which went from ~20% to 70%. However, the number of tokens in the pools did not increase proportionally to the price of the RON token.

💡 Ronin concludes that the increase in reward value did not drive significant results in providing DEX liquidity. With this reduction, they expect to save RON 2 million ($5.72 million) in expenses in the first quarter of 2024 alone.

🔒 Currently, Katana DEX represents over 99% of the $200 million in total value locked (TVL) on Ronin. Despite the recovery of the RON token, the TVL has yet to return to the $1 billion levels prior to the North Korean hack two years ago.

What do you think of this decision by Sky Mavis? Comment below! 👇