This proposal is expected to appear on Snapshot for voting on 2021-07-26T12:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
Propose to have LM rewards for Loopring (LRC).
Current problem: Loopring are working on big things and have plenty of long term holders. These holders don’t know what to do with their coins, it’s lying dormant. If you survey the market you will realize there is barely any staking services or LM rewards for LRC token.
If Bancor offers LM, deposits of LRC will come pouring in.
Propose Liquidity Mining (LM) program aimed at achieving the following goals for Loopring (LRC):
Attracting new liquidity into LRC pools as presently, barely any protocols or centralized exchanges offer staking/LM rewards for LRC. We will get a lot of deposits since LRC holders will come running.
Creating stickiness to incentivize long-term liquidity provision
With more liquidity in Loopring pool, Bancor and loopring stands to win more conversions in the market, which generates more fees for liquidity providers (LPs) and results in increasing APY and protocol revenue.
Users who are initially drawn to yields from LRC Liquidity Mining rewards will hopefully become acquainted with the unique benefits of Bancor protocol and perhaps deposit other tokens too, including impermanent loss protection and single-asset exposure.
I am not an expert on using this app so please others do assist and add to this… how to take this to next step?
This proposal is expected to appear on Snapshot for voting on Monday July 26th.
In my opinion though this is not a great pair for LM Incentives, we would have to have a reason revolving around either collaboration or volume. Currently LRC’s volume on DEXs is incredibly low and the pool has space for hundred of thousands in depth. I cannot see how we will create stickiness if there is not a significant enough amount of revenue in the Assets DEX Trading.
I agree with @tenzent. I don’t think a strong enough argument has been made for LM rewards on this pool. I guess we will let the DAO decide on whether this pool is worthy of rewards.
Fair Enough… Either ways, Loopring is a solid secured project with the same level of security as Ethereum. I think they will grow to have a huge share in the DEX market… Especially since they use ZK roll ups. Vitalik also supports it and they have huge things in the pipeline.
Also just want to share, how does Alpha or ZCN have any benefits to Bancor? Does it even add value? The holders of Alpha and ZCN are highly concentrated too… Yet DAO voted for LM rewards for these two projects.
Alpha despite its market cap has been one of our best performing pools. Nothing really seems to have come out of the ZCN Campaign I’d agree there. The problem for LM is not so much with the centralization of the supply as much as its about lack of volume.
