Title: MVI Liquidity Mining - June 2021
Created: 2021-06-07; updated June 8, 2021
Extend liquidity mining rewards for the MVI-ETH Uniswap pool in line with IIP-24 mandate over the 3rd and final 30-day period of the 90-day total. Total INDEX allocated for the 30-day period will increase from 2,743 INDEX to 3,286 INDEX (approx. $101,440; 7-day MA)
[incorrect May '21 reward value used in original post (increase 4,447 INDEX to 5,328 INDEX), corrected (to actual 2,743 INDEX issued in May '21 with new June '21 reward of 3,286) on June 8, 2021; good catch @verto0912 ; figures and calcs updated (thanks @overanalyser ) in post below.]
Mandate for days 61-90 within IIP-24
Minimum 1,425 INDEX
Maximum 5,700 INDEX
Target $5MM Liquidity
7-day Average Liquidity (Uniswap V2: MVI-ETH Pair): $4,173,548
+2% Depth (As of June 4, 2021, at MVI price of $48.99): $42,405
-2% Depth (As of June 4, 2021, at DPI price of $48.99): $42,278
Percentage of target liquidity achieved (7-day trailing): $4.17MM/$5MM = 83.47%
Further calculations here: MVI Liquidity Mining - June '21 - Google Sheets
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 (IIP-24 and previous LM Update No. 7 linked above). No action would be necessary for existing liquidity providers.
7-day Average Liquidity / Target Liquidity = Percentage of Target Liquidity Achieved
Given that the Percentage of Target Liquidity Achieved is currently at 83.47%, an increase in the existing incentive by a factor of approximately 1.198 (1/.8347) results in the new reward for the final 30-day period increasing to 3,286 from the previous 30-day allocation of 2,743.
The reward calculated falls within the banding established in IIP-24 of 1,425 (min) and 5,700 (max).
- Sustained liquidity is a core driver for broad spectrum adoption.
- Maintaining continuity of incentives will likely retain current LPs.
- While there have been discussions regarding the broader implications of LM ( Liquidity Mining Strategy ), this proposal is limited to the mandate of IIP-24 and would be the third and final 30-day extension of incentives under that IIP.
This post is the formal recommendation of the rewards for days 61-90 as per IIP-24. Implementation is currently planned under the existing mandate; no action is required by the community.