Liquidity mining strategy - starter for 10

All, During todays call it was suggested that we should split out the different liquidity mining programmes (UNiswap for maintaining large liquidity, Sushiswap to build bridges and Loopring to ensure we have a foot hold on L2).

I don’t think that is possible, the available liquidity will react to the incentives that are in place. We need one single strategy that covers all (with some flexibility over the longer term).

That’s why I made the proposal for an overall reduction in INDEX, but spreading it over 4 pools (UNI, Sushi, Loopring AMM and Loopring orderbook) and committing to 60 days with a planned reduction in $ value.

However, it’s was clear that the proposal didn’t attract widespread support and some fundamental disagreements.

As a result, I think the best approach would be to end all incentives and let the market find it’s natural balance. Assuming that current trading volumes continue, an APY of 30% should result in over $30M of liquidity.

If there is a sudden move to L2 (optimism etc, then I would expect the L2 exchanges to be courting liquidity - more UNI rewards?)

With the rollout (and publicizing) of exchange issuance, we should be able to serve all our users…


I would agree with @Matthew_Graham that we should have a strategy for LM’ing new products. But this is really something the methodologies should be outlining as part of the product proposal.

5 Likes