Protocol Owned Liquidity (POL) is the core of Aladdin's liquidity strategy. Through POL, it provides users with permanent liquidity which facilitates exits.
Aladdin will gradually transition from the existing ALD/ETH liquidity incentives to POL.
POL rewards liquidity providers through LP bonding process, which means LPs holding ALD/ETH, ALD/USDC can bond to get discounted ALD.
At the same time, part of the bonding profits from each epoch will be distributed to POL. The initial default rate is 50%.
In conclusion, there will be no fixed cap on the number of ALD issuance. Instead, the issuance speed depends on demand for bonding and rewardRate. RewardRate is determined by community governance.