Background:
- In the current model, UNISWAP’s transaction fees may have a negative impact on the income of LPs (Liquidity Providers), leading to a decrease in liquidity.
- There are currently under-utilized advertising spaces on UNISWAP that, if optimally used, could generate additional revenue.
Objectives:
Innovatively utilize UNISWAP’s advertising slots, enhancing the utility and value of UNI tokens, while improving the earnings of liquidity providers.
Adopt the principle of gradual progression to ensure stable implementation of reforms.
Proposal:
- Introduce an advertising slot bidding mechanism: Determine the ranking of the advertising slots through UNI stake voting. Users can stake&vote for the trading pairs (such as stoken-USDT/ETH) they deem important by staking UNI tokens, to improve their ranking on the UNISWAP APP page. To gain higher exposure, holders of trading pairs need to pay additional fees, for instance, the top rank requires an extra 0.5%, the second an additional 0.4%, and so on. No extra fees are required for ranks beyond the tenth.
- Distribute extra fees to UNI token stakers and corresponding liquidity pools: A part of the collected additional fees can be distributed to the UNI token stakers who participated in the voting. Another portion can be automatically added to the stoken-UNI liquidity pool, thereby improving liquidity and rewarding voting participants.
During the implementation process, it is necessary to control the speed and scale of the reforms to prevent rapid changes from causing market shocks. Additionally, all reforms should be conducted under community supervision to ensure they are public and fair.
The part of this proposal about automatic addition to the liquidity pool is an innovative attempt that requires further technical validation and community discussion to confirm its feasibility and impact.