Mento Labs has launched new foreign exchange (FX) pools on Uniswap, offering liquidity providers Annual Percentage Yields (APYs) of up to 89%. The new pools are part of a collaboration with the Stabila Foundation and GrowUniswap.

The initiative aims to enhance on-chain FX markets by incentivizing liquidity for emerging market currency pairs. The list of eligible Mento pairs for these rewards includes stablecoins pegged to the Ghanaian Cedi (cGHS), Colombian Peso (cCOP), Brazilian Real (cREAL), and British Pound (cGBP), all paired against USDT. Liquidity providers in these pools will earn rewards in both CELO and UNI tokens. This move is part of the 'On-Chain FX Campaign,' a broader strategy to encourage participation in FX spot markets on Uniswap V3.

By providing these incentives, Mento and its partners are working to deepen liquidity for non-USD stablecoins, a crucial step for the growth of DeFi in international markets. The campaign signals a growing trend of protocols using token rewards to bootstrap liquidity for new and exotic trading pairs, particularly those focused on real-world assets and currencies.