I bet that caught you eye , particularly as I’m heavily involved in thinking about the DPI product and maintaining AUV and liquidity.
Why has the coop been focused $30 M Uniswap liquidity?
We want $DPI to be massive, 100’s of Millions AUV.
Held by everyone; small, large, companies, family offices and DAO’s.
The biggest immediate impact on growing AUV, are the small % of massive holders. 10 DAOs buying 3,350 $DPI like YAM (which has gone from $250 K to $394 k). Purchase as much as 250 individuals buying $10 k.
In order to make DPI holding attractive to large entities we have been targeting $30 M in UNISWAP to allow large trades with minimal slippage. See LemonadeAlpha’s spreadsheet here - Note most of the massive trades were made by AlphaLabs Farm.
This makes sense. Large purchases need to know that they can buy and sell with known costs and minimal slippage.
However, Uniswap is not the only game in town for on chain exchange, and not even the only DEX within DPI!
Sushi did $SUSHI LP mining for 2 weeks in November and reached ~$1 M ETH:DPI, This has stopped so liquidity has moved to incentivised pools.
Sushi are now moving forward with Onsen with 58 pairs available for liquidity mining using Sushi and are asking project to apply / provide additional incentives.
Linkswap have a Link:DPI pool, which is providing YFL tokens as rewards.
The Current market shares (19dec20):
So, where am I going with this?
Rather than talking about Uniswap, we should be talking about TOTAL DPI LIQUIDITY on DEX’s. It’s that simple. So instead of $30 M of Uniswap liquidity, we should say “$15 M of DPI liquidity”.
We should encourage use of all the different DEX’s, particularly those inside DPI (Uniswap, Loopring and Balancer) and we should make the different options available to the market.
- DEX’s and DEX agregators for the secondary markets (I know that concourse are about to launch Slingshot, so that could be a good integration for DEX aggregation. )
- Direct issue and redeem from the 10 underlying tokens
- Direct purchase from ETH via the 10 underlying tokens.
The first is best for smaller orders (< $10,000 ?)
The second is good for people who hold lots of DeFI tokens.
The third is best for large purchases where the gas costs of 11 swaps + issue is smaller than the impact of slippage.
We need to make sure that larger purchases are directed towards the low slippage methods of purchasing.
Note: A single large liquidity pool for DPI also helps arbitrage / vault liquidators. However, as these are purely profit seeking market participants. I would expect that those who can utilise multiple liquidity pools would have a cost advantage over the others.
I propose the following road map:
- Uniswap ETH:DPI Mining will continue until 7th Jan
- We do a further set of LP mining Uniswap ETH:PDI from the 7th Jan until 48 hours before LP token staking for DPI intrinisc productivity. However, I think we should reduce the rewards further and consider a lower target pool size (say $ 8,000,000 DPI ?)
- In parallel with the main Uniswap LP mining in Jan we start Liquidity mining on Loopring to help grow the L2 ecosystem. My intention would be a much smaller L2 pool. Maybe only $250,000 of DPI? (so 5% of the INDEX used for Uniswap).
- Februaries Uniswap Mining should only be lock in as part of the DPI intrinsic productivity work (IIP coming soon)
- In March we should do zero Uniswap mining. However, we could consider being a partner to Sushi rewards (particularly if Sushi are added to DPI - I think that the first eligible date would be early March).
- Drop the “U word” and start taking about $DPI liquidity - Action: ALL
- The Dune dashboard needs to look at all liquidity pools
- We need to have all three purchase options publicised and we need to educate the market
- We need DEX aggregators to be looking at all the DPI liquidity pools
- All three purchase options should be visible on both the token sets and coop websites.
- Both the coop and set websites should point to an aggregator rather than pushing all volume to Uniswap.
Repeat after me " We want high DPI liquidity on multiple platforms "