Hey Llama team,
Appreciate your proposal and work you have put into it, but to be precise and short, I find it utterly boring, please don’t be offender, I mean no disrespect and as I said appreciate your work, if you could allow me, I would love to explain my reasoning.
First of all lets go over what you are proposing:
First of the goals you mention is:
Immediately you follow with suggesting subsidising these pairs:
Lets look at first pair
*v3 USDC/DAI 0.05% TVL is $118m compared to v2 which only $21m (so here it seems you completely ignore the market, and forces that move it, the lower fee offers better rate for end users and increases trading volume, and hence is natural migration for efficient capital, if we compare last 24h volume its $116k on v2 vs $7.29m (x62 difference), adjust it for 6x difference in fees (0.3 vs 0.05) and 5.6x difference in volume, we get that v3 gives LP an almost x2 ROI, and im deliberately leaving out all the benefits and earnings adjustments of concentrated liquidity
Not sure there is any point of going over every pair as what you are here are proposing: is to provide you with funds for exactly this core capability of choosing what pools to incentive + some periphery tooling, like dune, etc (for the latter I suggest applying to Uniswap grants could be more suitable)
So at this point I wouldn’t even consider with voting to provide you with budget to allocate treasury funds for allocation between pools
Furthermore your suggested weekly rate, which is exactly the same as recent one requested by uniswap grants team, adds even more concerns to me, because I don’t understand how different size team, with different set of capabilities, responsibilities, challenges, etc could be cost the same
Lastly I would like to finish where I started is why I think this proposal is utterly boring, I do agree with where you guys are coming from, making a good use of treasury and really feel these two goals you have set out in your proposal:
and that’s why I completely not getting how is this experimental at all, its just basically the same old farming or what it called, that has been in the market for quite some time and personally I don’t think in your proposed suggestion solves further distributing ownership of UNI tokens or experimental, hence boring.
What I would like to see, and would gladly vote for is some innovative ideas, i got couple just while reading this thread and writing a reply:
- Something like with partnership with unigrants we bootstrap any project/community approved by them with liquidity for their token pairs on v3
- We provide UNI/ETH pools with 1m of UNI liquidity incentives, just cause they didn’t get their fees (around $30k) from the defifund dump the other day due some weird reasoning behind it
- make idea 1 into a proper dapp
Just to finish, as I have said I feel that I share many of the goals you have outlined here and understand where you coming from, but I simply think the proposal doesn’t solve the problem, hence I will be voting against it, if it comes to the vote, agains thanks for your effort and time!