Hello everyone! My name is Dave Liebowitz and I lead growth at Gelato. I have been talking to members of the Index Coop team and wanted to get some feedback from the wider community. What I am proposing is implementing a liquidity mining program that utilizes a G-UNI pool of the DPI/ETH pair.
For those who are not familiar, G-UNI is an easy-to-use, unopinionated framework for Uniswap v3. The contracts have been audited and projects such as Instadapp and Float are already utilizing G-UNI for their own liquidity mining schemes. Index Coop can benefit from using G-UNI because:
- Essentially, users can enjoy the same experience they are used to when providing liquidity to Uniswap v2 without the overhead effort that it takes to manage a Uniswap v3 position. The two core components that make up G-UNI are the fees are automatically reinvested and positions that the user interacts with are ERC-20 tokens rather than NFTs The fungibility of positions allows them to be utilized as a money lego in other protocols beyond just liquidity mining. For example, a G-UNI DPI/ETH pair can be used as collateral in a lending pool on Rari.
- The community can decide how much or how little they want to manage the pool and can decide what ranges they want to incentivize liquidity, under what conditions rebalances occur, what party has control of the G-UNI pool, etc. For example, the community can decide to delegate the “Manager” functionality to a specific smart contract that enables “rebalances” (changing the range of the pool on Uniswap v3) to happen automatically based on any conditions managers deem appropriate. An example of an easy implementation would be to rebalance the position around the TWAP of a given pair.
- In the future, the community can decide to migrate Uniswap v2 positions to the G-UNI Uniswap v3 pair of DPI/ETH. This would simplify the transition of migrating liquidity to v3 as well as bring more capital efficiency to the DPI/ETH pair.
The Gelato team will be there to help with the process each step of the way and assist with setting everything up. If the community has any questions or feedback, we would love to hear from you!