Incentivizing liquidity providers with variable intrest/fee

The idea is to incentivize who is already providing liquidity to keep doing it for a longer period of time, without the need for locking periods, for example:

  • the first day doesn’t count for rewards, from the second day onwards the reward grows linearly to it’s full potential in the span of X days (30?) and then stays fixed until liquidity is removed. Removing just part of the liquidity sets you back less than X days according to the amount removed

and/or

  • the claim reward fee decrease from it’s maximum value over time, disincentivizing daily removal and dump

Obviously this would need fine tweaking, but you get the idea. Let me know what you think

7 Likes

Good idea, this is a stab at one of the problems I mentioned relating to airdrops where the incentives aren’t properly aligned for long term liquidity provisioning.

So to summarize,

  • A multiplier for PNG rewards that “increases” the more “mature” the liquidity added is
  • A maximum multiplier cap that prevents any single player to compound to much
3 Likes

Very good idea, but not the moment yet, we need to bring in more people, and to bring in more people we have to lower the barrier of entrance, this would rise the barrier instead

2 Likes

I like the first idea.

The second idea will cause people to save then dump as soon as price rises, crushing any bullish token activity.

I like the idea, but I prefer it slightly more simple, and i’m open to the idea of it being 30days or 7days or even a year :smiley:

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

1 Like