Promote Pool Liquidity with Random UNI rewards

Requests for Comment
1

Hi UNIs,

I do not have a formal proposal idea, but I will make my best here to present my “concept”.

THE ISSUE

I foresee liquidity in Uniswap dropping once the genesis pools for UNI farming dry out Nov 17.
My opinion is that the total value locked (TVL) size of a DEX is what distinguishes DEX “status” among themselves.

So having this in mind, How do we keep liquidity providers in Uniswap without much UNI inflation?

THE “PROPOSAL”
Every week \ day \ x-period of time, pick randomly (by smartcontract) among x-amount of addresses who are providing liquidity in the top x-number of pools and reward them with a fair amount of UNI. The amount to award per x-period of time can be set to a satisfactory inflation ratio of the UNI governance.

I think this distribution is fair for small and big liquidity providers, and keeps the liquidity providers interested; sort of a lottery ticket.

That is the extent of my proposal concept.

Please agree, disagree, make comments and perhaps if there is interest there can be more details further developed, discussed.

**There would have to be a way (via smartcontract) to avoid people or bots from creating multiple addresses with low liquidity; but those are details. People always find ways to break things. However, I believe the ISSUE is real, and I hope I made the overall concept clear. Judge the concept.

5 Likes
2

Would doing this not be equivalent (from an absolute supply perspective) to distributing UNI pro-rata amongst all liquidity providers, which would in turn cause the inflation problem you are trying to solve?

3

@Creptio

I suppose distributing UNI uniformly to all liquidity providers could have the same effect; both on keeping liquidity providers with Uniswap and having a fixed “low” circulation supply inflation.

I do think though, as a Liquidity provider, that having the chance to win the whole established supply for a week, rather than just your equivalent fraction of the pool gives it an interesting “twist”; something like Pooltogether.