Dynamic Liquidity Farming

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


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


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.


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.


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?

To support Pangolin liquidity and PNG long term.

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I really hope those would be sufficient, but realistically, without providing additional concrete incentives (e.g., staking) it could prove to be a difficult task.

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Nice idea needs tweaking but i love the fundamentals

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Great Idea @Xavier I have adapted your idea a little here, what do you think?

Take a look at the proposal and make comments :smiley:



Here is the quick math, please correct me if I’m wrong.

Let’s assume “PGL current holding” is the wallet of an individual and “30 ma” is average holding of PGL of the community. When the holder put less than it gains more rewars accoridng to;

Here is the calculation;

PGL Current Holding 30 MA PGL Reward
100 100 100%
100 50 70,71%
100 150 122,47%

But, if it is calculated as follows; it sholud be the one that is desired here I guess.

% Rewards = Sqrt(PGL/PGL30AVG)

PGL Current Holding 30 MA PGL Reward
100 100 100%
100 50 141%
100 150 82%

So that, who put more than average gains more.

Here is my opinion about the topic, this method just gives whales much more profit and less to small investors. Because this method inherently exponantial to liqudity provider.

Current liqudity method is better for smaller investors. And, I believe this idea is not good for the community.

We should keep looking for better solutions.


Then, I bought the dips

great proposal. This will add value to PNG

Yes, like the first table is almost perfect. Those who hold over time are rewarded for it. Good for Hodlrs of all size, which are the ones who make Pangolin usable and stable. Not so good for those who want returns in less than a month or often stop providing liquidity, which is not really supporting Pangolin.

Not the second table, as this punishes Hodlrs, and only helps people who constantly plough more in. Plus that equation is open to be ‘gamed’.

Is it already implemented?

If you look other dexes and dapp which ones created after pangolin almost all of them have upgraded their own so quickly! This proposal is already active on many other defi apps. For example Penguin finance is created very very late then pangolin but it acitvated some features like this. I coded some smart contracts and I know that it is not hard for a good developer team! It is only mathematic and coding if you know some economy you can do this easily and already there are a lot of example of this proposals!