Hi all, LP here. Has the LM program already started, if not when will it start, if yes, when does it end?
I have read the proposal and the comments. I am commenting here on the liquidity mining incentives. I would be interested to understand how we could help. See below a description of our current active LPs.
Main net USDC/WETH 0.3% and 0.05% (around 10% of each pool) - I was wondering how we could help.
We also provide large chunks of liquidity in pools such as LINK/ETH (around 20% of the pool), MATIC/ETH (around 20% of the pool), UNI/ETH (around 20% of the pool).
We will also provide liquidity on USDC/WETH 0.05% on Arbitrum (around 20% of the pool).
I think three phases are great.
Regarding the pools, WETH/USDC 0.05% and WETH/OP 0.3% are interesting to us. We could go to a Maximum of around 20% share of the pool to each at current TVL (8.5 and 5.4Ms respectively), if that would make sense. If there is no incentive on the WETH/OP pool though, not sure if it makes sense to participate.
Regarding third-party contracts on top, like Arrakis, we wouldn’t be inclined to do it, but we have a call with Arrakis soon, so we could discuss that.
We are not looking to hord the incentives, but rather to be a long-term LP on both pools and enjoy some incentives.
Uniswap V3 or any AMM for that matter are not well suited for the individual, unsophisticated investors, because they might not fully understand the shape of the risk/return function and might suffer more IL than they were ready to have. Hence, I would recommend having a few parties to provide long-term liquidity. By long-term, I mean nearly forever.
As to where, how, when, why.
Where: highest liquidity
How: Passive liquidity and Active Liquidity to the same level.
When: Long period, of course IMO.
Why: Create long-term deep liquidity on major pools.
The largest and deepest pool will automatically have more trading, because of better Arb opportunities. Trying to incentivize a losing pool doesn’t make sense IMO. The deeper ANY pool the better. The deeper the largest pool, the better. We wouldn’t go to a smaller pool as the risk would be too high.
@devinwalsh thank you for posting the Snapshot polls, helped a lot.
That would be it from my side. Looking forward to hear from you guys.