GP11 DeFi Rewards - Lofty

Hey everyone, as you may have heard, we launched our AMM + Liquiidty Pool feature for real estate properties on Lofty late in 2023. As a result, this will be the first period we qualify for targeted DeFi rewards.

Our distribution plan is to give the rewards pro-rata to people who stake USDC in any of the pools that have been launched on the platform. As long as you haven’t un-staked by the cut-off date, you’ll receive a pro-rata portion of the rewards based on your contribution to the total percentage of USDC staked on the platform.

For example, let’s say you staked 10% of the total amount of USDC as of the specific date, you’ll receive 10% of the total rewards we receive from the targeted DeFi reward pool.


i would like to get some details:

  • amount of rewards allocated
  • amountof usdc staked currently

what is the goal of this incentive, how does the usdc staked on your LP help algorand in general(i’m not familiar with the feature)


can you be a bit more specific on how many snapshots you want to do? will this be a weekly thing with a weekly payout or just for the whole period?



I agree with @lobo. please, provide how often snapshots are taken and rewards paid out. I think weekly distributions are good way to go. This way new liquidity will be incentivized in the middle of the period and reward cycle is not too long or short.



The amount allocated to us is 62,531 ALGOs capped at 119,704 ALGOs assuming our TVL grows by a lot during this period.

You can see the TVL live on our staking portal at

As far as we know, Lofty is the only place in the world where you can stake USDC (and soon ALGOs) against real properties. These are actual individual properties, not a fund or a private REIT structure.

This unique marriage of a traditional RWA coupled with DeFi mechanisms actually attracts a lot of non web3 people (based on our internal data), who normally wouldn’t touch DeFi with a 10 foot pole. By onboarding these users and teaching them how to interact with DeFi features and easing them into the ecosystem, we could serve as a sustainable gateway for actual mass adoption to happen and certainly pave the way for some users to eventually interact with more of the DeFi ecosystem.


We’re open to feedback, so things are subject to change.

But the goal is to reward people who aren’t just here to take advantage of some extra yield and dip, but to really incentivize people to provide liquidity for a longer duration.

The actual rewards for staking are paid out in real time, so stakers can already withdraw those as frequently as they’d like, but for these rewards we were thinking of running a query at the end of the cut off date and send it out to people who qualified (those who kept their staked position for the entire period) pro-rata based on my original post.

So for the standard rewards from our pools, people can claim them anytime, but for these bonus rewards, they would be sent all at once to people who qualified in a lump sum.


Nice, thanks for the response - deffinitelly great addition then!

Youre doing a great job and the best innovatjon of any blockchain. Whatever you ask, lets give it to you.

i see. you should keep in mind that if you only reward people who keep their liquidity for the whole period (starting at date X and ending on date Y) people wont be able to provide liquidity and earn part of these incentives later on during the period (than date X) which could lead to less liquidity that you could have gotten

I am using Lofty and I have a general idea of how AMM + LP works. However, I do not have the expertise to explain it accurately to everyone. Given that you’re pitching to the entirety of the Algorand ecosystem, I think there will be people who do not know how the USDC staking works in the Lofty AMM and will need an explanation. Could you give us a brief explainer @PMDBT in this discussion?

I am for this proposal but I think people need to fully understand how the staking works so they are informed when voting for/against.


Appreciate the kind words, but more than happy to have folks dig in more and ask the tough questions :slight_smile:

Fair point, we’ll try to pick the most optimal date X. With that said, we still think this is the most optimal strategy for rewarding actual long-term users and prevent the rewards from being “farmed”.

Open to other suggestions if you have any as well.

Most things are in our learn center on the main website. You can see the sections regarding the PMM and liquidity pools here - Proactive Market Maker (PMM) & Liquidity Pools | Lofty Learning Center

You can also read our Notion doc tutorial that has everything in one place and is very detailed - Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.

This is hard for me to wrap my head around. And if i dont understand something I wont provide liquidity. If youre trying to attract more liquid maybe a simple example/breakdown of how this will work with incentives. Love the idea just need things cleared up. Make it so easy and clear anyone would join in

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Can you elaborate on which part is confusing?

If you’ve ever staked in any liquidity pools before, this should be very familiar. It’s pretty much an identical experience.

The difference is that instead of two crypto assets, you have the equity ownership of a house and USDC in a pool together. Staking USDC earns you yield from other people trading in the equity of a house.

These rewards will go towards boosting the yield of people that stake USDC.

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Okay that makes sense. But will the apr of the rewards be shown? Will there be a single start and end date?