Fund MVI:ETH liquidity mining for a further 30 days with a total allocation of 3 286 INDEX
Replenish the current staking contract for MVI:ETH Uniswap v2 LP tokens so that the current campaign is extended for a further 30 days (current staking contract term).
This is intended to support a sector leading liquidity pool to allow MVI to be traded with acceptable price impact (~5 ETH at 1%).
$MVI launched ~80 days ago with a 90 liquidity mining campaign targeting $5 M Liquidity in the Uniswap V2 pool. This campaign has been largely successful, although Liquidity AUM has reduced with the recent bear market.
The Uniswap v2 pool is the main market for MVI, The current $2.9 M pool size allows 5 ETH [~300 MVI] trades with less than 1% price impact. LP’s in this pool are currently receiving (the annualised equivalent of) ~4% from trading fees and ~20% from INDEX rewards.
The current liquidity pool contains ~50% of all MVI issued.
Significant cuts in INDEX rewards (without an increase in trade fees) are expected to result in a significant reduction in the liquidity and so result in larger price impact for any given trade. In order to maintain the current liquidity (in LP token number and/or $ terms) continued liquidity mining is required.
Extend the current LM campaign for MVI:ETH Uniswap pair for 30-days using the existing contract (as outlined in IIP-24) for an additional 3 286 INDEX (~110 per day).
No action would be necessary for existing liquidity providers.
- Extend the mining incentives for the MVI set according to the parameters above.
- Allow the incentives from MVI liquidity to stop at the end of the current campaign (~10 July 2021).