We should stop talking about Uniswap Liquidity

I think there may be something to be had with a Sushi pool at the end of February. The timing lines up nicely with the potential inclusion of Sushi in DPI which is around 28th Feb. The benefits would be

  • Marketing event for both teams, collaboration with a token held within DPI

  • Rewards can be split and reduce the burden on INDEX alone

  • Liquidity in general is split between Uniswap and Sushi, makes sense to widen the options for users. Aggregators will still allow for best option if users are slippage/gas sensitive

  • With the potential update mentioned by @puniaviision that helps whales continue to move in and out of DPI in size, there is no longer a need for huge liquidity in one pool

  • Retention analysis will give more info, but if we assume DPI is a sticky token, the more users we get holding it, the greater the potential for retaining them

  • Gives enough time to fit the intrinsic productivity experiment in Jan/Feb before moving on to Sushi for potentially a longer term program

Drawbacks

  • Splitting liquidity means splitting user attention
  • Whales may not want to use the more sophisticated method for minting DPI in size, lack of large pool could turn potential trades away

Other than Sushi I’m not too fussed what we do apart from tuning the INDEX contribution to match our liquidity targets and making sure the community doesn’t feel like we are overpaying.

@verto0912 specifically, when it comes to INDEX distribution I posted some thoughts here about the potential to reward for index holder governance participation or providing a risk backstop. It led to some passionate debate in the comments. Perhaps you can take a look and see if it’s the kind of thing you were thinking of.

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