I / we have always discussed liquidity in USD terms, and I suspect that the largest influence on DPI liquidity value in the last month has been the drop in ETH and DPI price (Although @Matthew_Graham has noted some LP token redemptions Discord )
Looking forward I see the liquidity mining strategy comprising 3 pillars:
- L1 Pool size required for trades without undue price slippage
- Liquidity to maintain market dominace in a sector.
- Liquidity to promote adoption of L2’s etc.
Until now we have used Uni v2 to address #1 and #2.
With the advent of uni v3 and more side chains / L2’s there are many more options to work with.
PWG have a work team looking at Uni v3, and how it impacts the coop’s product/liquidity mining.
Note
There is already a Uni v3 pool for DPI, and I’ve started doing some comparisons over 14 days:
@$400 DPI, on v2 we are seeing ~10 trades a day over $100,000 which has a 0.68% price impact.
[V3 has 0.8 or 2% price impact depending if you are buying or selling…]
At the moment, I’m hoping that we can have a general discussion on LM / uni v3 / trade size / growth before the end of June and have a new strategy in place before the end of this final 30 period of LP under this mandate.
PLease see the discussion here: