Dynamic Liquidity Farming

I saw that a lot of people are angry because the price of PNG has gone down from the ATH and a lot of users lie to themselves that the whale is pushing down the price, but the reality is that it’s pushed down by all the users because they think that the tokenomics are wrong. I assure you that the tokenomics are not wrong and are designed pretty well.

I thought about this, I’m not a Dev and I don’t know how hard this is to implement, but how about creating a Dynamic Farm Reward System based on how much time you held the tokens.

For example, if you start farming today you need at least 10 days to earn 100% of the Png rewards, if you claim the coins that you farmed you start from 0 and you need to wait another 10 days to go from 10% to 100%.

This will push the farmers to think twice about claiming the tokens and this will drive the price up because if you sell the tokens you will need time to go back to earning 100% PNGs by providing liquidity. But if you claim the PNGs and you use them to add more liquidity then the rewards will start from 100% immediately. I don’t know if this can be implemented but it can be a good trick to reward the real PNG holders.

The whales will only sell once in a while with this “Penalty System” but by that time the liquidity will be much better and the price cannot be “manipulated” so much.

56 Likes

I agree with this proposal. Is there a way we can implement this fast?

I’ve seen Pangolin Snapshot and am wondering how fast we can get a proposal approved and live. We need action ASAP.

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DAMN IT, this is a GREAT proposal!! please devs! make this happen as soon as possible!!! Just please!

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what a gr8 idea!! :slight_smile:

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i think that would be pretty unique among all dexes. Devs have to see how complicated the implementation is.

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totally agree bro! never have seen such approach and that would be insanely clever move

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It’s a good idea, but I’d add that if the PNG are compounded it should stay at 100% reward.
For example I have liquidity in AVAX-PNG and I have 100PNG as reward. If I compound that 100PNG adding 10AVAX then I stay at 100%. Also selling half of PNG to compound should reset the timer.
I’d like a similar approach also on liquidity, i.e. once you lock liquidity in a pair you’ll get 10% more every day the liquidity is locked, so it’s not removed easily from the pair and it’s not gamed moving around the liquidity in the most profitable pair every once in a while.
It would be a feature no AMM have.

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Good idea, would like to see this implemented!

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Great idea. Any incentive to hold PNG is beneficial for everybody.

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Interesting idea but rather a complex one IMO. And wouldn’t we achieve the same effect
with PNG staking ? Simple staking pool with 0 fees for staking and adjustable % fee for
withdrawals varying from say, 0.5% to 5% or even higher. Then distribute part of generated fees to remaining stakeholders and use the rest for governance treasury which in the future could be used for funding development of anything community approves via voting.

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This is a really good idea, and would help a lot to stabilize the PNG price. The current Pangolin market cap just does not make sense. We need to fix it in order to do justice to this project and its value.

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thats a nice idea. wonder how hard it would be to implement it and how long this would take.

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Love this idea. Has any other DEX implemented anything similar?

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Hi @Xavier, I see some potential outcomes / issues:

  • Why should a whale provide liquidity in the first place if their PNG farming rate won’t reach 100% before 10 days? This would create an opportunity cost for a whale, which could decide provide liquidity on another DEX.

  • This proposal would kill autocompounding on Pangolin as LProviders would have to wait 10 days before AC can start. I can easily see many people migrating to other DEXes where they can use Snowball projects for autocompounding and higher APYs.

Some additional incentives (e.g., carrot) need to be added to your proposal to address these potential issues.

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Thats a great idea and top tier in a package of measures to bring png economics to where they should be

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You could autocompound 100% from first day is what I understood:
“… if you claim the PNGs and you use them to add more liquidity then the rewards will start from 100% immediately.”

Claiming them would be taxed depending on how long you wait. Send these to the treasury. If you instead provide liquidity you are not taxed.

Plus whales are overrated, lots of small fish is better!

Snowball or other projects with autocompounding could be whitelisted, I repeat I’m not a dev and I don’t know if it’s difficult to implement such a system.

Let’s say, you put 0.0001 PNG and its equivalent counterpart. You use a autocompounder. After first claim and putting all back in, your rate becomes 100% already. Now, you can go deposit your main stash, say 10000 PNG and its counterpart. This way you start earning at 100% rate from day 1 from your 10000.0001 - bypassing the slow ramp-up of the reward rate.

@Xavier, it’s not about the implementation. It’s about the operational logic. Whitelisting only ACs would create inequalities and it’d become unmanageable if/when more ACs pop up. Imagine people writing their own bots/autocompounders as well… Pangolin cannot keep an up-to-date whitelist all the time.

I’m still not convinced by this proposal. It needs more incentives for whales as well as little fish to provide liquidity. If ACs don’t work properly, people will go to other DEXes with much higher APYs.

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That is not “compounding”. Compounding is only when the reward is put back again in the pool. Only the compounded part stays at 100%.

Yes - you’re right if the platform can track what’s being compounded and what’s not.

Still, why should you keep your money locked for 10 days if there are better APYs out there?