@Firestorm for president.
Agree with the above assessment. Instead of focusing on the behavior itself, focus on the reason for the behavior and modify the system to incentivize the behavior we want.
I’ve been reading recently on Bancor and their BNT staking mechanism to drive value in holding the token itself and using it to provide cross-chain liquidity.
I was recently looking into pulling across some ETH on the AEB, but the notion of IL protection insurance for LP providers struck me as a really interesting concept, putting aside the fact they still operate on Ethereum and not Avalanche since I don’t want to pay the gas to interact with Ethereum anymore unless forced to do so.
Mostly, I agree with your assessment. on the other hand, Pangolin is a financial instrument and investors would like to earn some money. In this current shape of Pangolin, small investors are loosing money due to IL & low prices of PNG and unfortunately PNG farming has not compensated this loss, yet. That’s why, when they see whales are dumping their yields, They feel they made a wrong desicion on their investment choices. That’s the psychology somehow needs to be managed. IMO, Best way to manage this is the participation to the governance. Unfortunately, there are 2 more months for the launch of governance. I hope it would be possible to make it earlier.
Thats logic. So If this is true, whales use PNG for creating more AVAX. So if AVAX go UP, this whale leave go up PNG, if AVAX hold, PNG need to hold, if AVAX down, whale need PNG down. Solution? More liquidity for PNG, more motivate for HOLDing PNG, like staking, bigger % or other.
There are other DEXs out now (I can think of Complus and Viper offhand) which are using their DEX tokens for staking purposes to participate in 1/3 of the trading fees as additional incentive to hold the native DEX token overtop of your specific pool participation of 0.2% of the fees.
This would make it more likely for users to hold the native token vs farm and dump due to potential compounding possibilities by holding more.
So if we were to offer PNG staking to increase exposure to trading fees that might be one possible way to solve for this. Initial lock of PNG tokens during farming phase may have helped as well to ensure early users are invested in the longer term vision of the DEX vs short term gain.
PNG price definitely needs to be stabilized. We can’t have PNG gained in non-PNG pools being dumped on PNG LPs.
I wrote about it again and again. Ekonomics of PNG need repair - motivate to hold PNG. NO reason for holding PNG. ASAP create staking options, better APY for PNG holders, and IDO for PNG hodlers etc.