@glenn thank you for your comment. I understand and agree with you.
As you have mentioned too, Bancor has received 52% REN liquidity and that is no small feat. It has taken both the v2.1 upgrade and the Incentive program to achieve that though.
The incentives above bring HODLERs, who get to use Bancor and become familar with the network… hopefully adding more liquidity for other tokens and/or using Bancor for swaps.
The question for me now is what reasons other traders/users have to move on from a DEX they are currently using and accustomed to, to Bancor? Or… even, reasons for new users/traders looking for a DEX to use Bancor?
In this current DeFi enviornment, things like “safety, security, ease of use, cost, gas fees, community” etc. all come to mind immediately.
I think lowered costs with the introduction of Arbitrum should have a big positive impact to bringing over traders, but I understand there is no date yet for this.
I agree too that some interest from the REN team and community could help to advertise Bancor’s offering.
Just an idea that’s come to mind while I write this and I will just mention it here…
As Bancor receive the needed liquidity for a token, if the trade volumes have not increased enough, why don’t the liquidity reward incentives become less for stakers, but incentives introduced for traders in that Pool?
With potential increased income in trading fee payments, stakers offset some of the loss in reward reduction.
It’s already been mentioned that these incentives can not last forever, but perhaps rather than a complete cut-off, a graded decrease for LP’s but increase to traders can occur as trade volumes increase… Until ultimately the incentives complete.
I don’t know if I explain myself correctly, but imagine a ‘see-saw’ with LP’s on one side and traders on the other. Starting with a ‘heavy’ incentive on the LP side, traders slowly balance the see-saw as incentives are passed on to them. This up-and-down continues until they are completely balanced between both sides, at which point, incentives fall away.
I don’t know if this meccanism is useful or even possible, but I thought I’d just mention it.