How to stimulate liquidity provision
complete
LevX
We now have around 12k LEVX treasury but our liquidity is significantly low compared to that amount so we can't sell it to diversify the treasury.
There are tones of reasons to motivate holders to add liquidity other than that as well, so here's a rough idea on how to achieve it.
(This benefits holders and the DAO as well)
- If you just stake 1 plain LEVX, you'll only get 1 THANO$ and it'll yield 1 new LEVX if you lock it up for 2 years (max period)
- By staking LEVX-WETH LPs, you can also get a multiplied amount of THANO$ (up to 10x)
- But it doesn't matter how many LPs you stake but what matters is how many LEVX it contains (the ratio changes for every swap)
- If the liquidity of LEVX-WETH is 0, you get 10x(max) THANO$ for each LEVX that your liquidity contains
- As the liquidity gets higher, you get less multiplied amount of THANO$, and in some point (let's say when it reached $1m) it goes under 1x so there's no motive to stake LP tokens any more (then you’re more likely to stake plain LEVX instead to get THANO$ which is also good)
- Now we have enough liquidity to be resistant to slippage, which is good for holders & the DAO but even though it diminishes, it creates desire for adding liquidity (so theoretically it never goes down below a certain level)
LevX
complete
BoyCope
LFG!
n
neko
is Thanos given per LP staked determined at: (1) time of lock or (2) somehow dynamically averaged over time?
if (1) then there is potential imbalance since there is very little liquid LEVX currently with a huge supply unlock cliff in 3 months. there may be an inevitable dump where later lockers will have much more LEVX per LP at time of lock compared to early lockers, and therefore much more THANOS. there should be a much larger boost to compensate early lockers.
also to add, early single stakers in first 2 weeks can get already get 10x boost without risking ETH, so there's less incentive for LP lockers with the same 10x boost.
LevX
neko: i don’t exactly get what you mean by (1) and (2).
And yes for 2 weeks, there won’t be a motive to lock LPs.
n
neko
LevX: example:
user 1 max locks when 1 LP is worth 100LEVX:1ETH and they get 1,000 THANOS with 10x boost.
in 3 months, let's say a large supply of claimable LEVX is done streaming and sold.
user 2 max locks when 1 LP is worth 1,000LEVX:1ETH then they get 10,000 THANOS.
does user 1 at this point also have 10,000 THANOS or just the 1,000 when initially locked?
Haidro
neko:
If user2 has bought 1000 LEVX beforehand and held then that seems to be the outcome. Otherwise if user2 buys 1000 LEVX from the market after the 3 month unlock dump then that raises LEVX price and so he has to use more ETH to provide liquidity for those same 1000 tokens. It kinda seems fair in both scenarios.
Not sure how much sense this makes.
Wish we had someone do economic model predictions or something.
LevX
neko: user 1 gets 1,000 THANO$ even though the price drops. so the point is, if the price drops it creates demand to lock up LPs so it'll diminish the downforce.
so if a user with some levx is bullish about levx's price, he'll lock up LPs asap while if he's bearish, he'll wait for the price drop
n
neko
LevX: do users have option to relock/extend max lock prior to expiry since it seems THANOS/voting power will also decay over time?
this can help mitigate LEVX price drops for early LP lockers if user 1 can relock at a lower price when their liquidity is worth more LEVX now
LevX
neko: they can extend existing locks or increase amount
LevX
neko: who are you in discord?
Cookies
LevX: So if user 1 gets 1000 $THANOS and the price increases dramatically in 3 months user 1 can keep extending their lock period for the price they initially provided liquidity at or will it get reevaluated based on the new $LEVX price?
n
neko
LevX: aisha / neko#5449
LevX
Cookies: in current code, they can extend it without reevaluation but I guess then it won't be fair
Cookies
LevX: I'm not sure... currently it incentivizes LP'ing if you think the price will rise (which is good) and incentives more LP'ing if price goes down (good). But the lock shouldn't be able to be extended indefinitely I think.
LevX
Cookies: I think extending needs to be supported only for non-lp stakers
loki89.eth
LFG!
tothemoon.levx.eth
I should of made that my subdomain name. 🤣🤣🤣
web3ismylife.eth
I believe this is a good plan
NFTismylife.eth
I'm in
LevX
planned
Samoris
Let's do it
Core ⚡
In Sire
Shillbo Baggins
I'm in
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