Trader Incentives [WOO HOO] - Brainstorming!

[tenzent]

Key Take Away: Rebates must always be less than the revenue they generated or else this opens us up to exploitability and unprofitability. Either this or a Hard Cap on how much BNT can be rebated at a time for a campaign.

@eldude, you are correct I moved it.

Also figured this should probably be added here - It’s a No on Gas Rebates :

@mbr

Gas rebates might be problematic. It’s certainly possible, but may not be the answer we are looking for. A more sustainable approach, and priority for L1 is simplifying the contracts.

I Recommend everyone to read through the entirety of the Previous discussion as well so we don’t argue similar things.

Trader incentives discussion

I noticed there is only one topic discussing trading incentives about tiered fees so decided to make a more generic one here. This topic’s purpose is to provide a space for the community to convey and brainstorm ideas around rewards/marketing solutions to attract more trader volume to Bancor. A couple of ideas just to get the discussion starting: A trading competition to reward the highest trading volume wallets on Bancor in a certain time frame. Subsidising trader gas fees by awarding a cert…

Also, Previously we had an NFT Competition but it had little impact though it was very cheap to do (which is why we did it).

I Really Like Incentives based on Trading Volume : Giving a small % rebate back on trades that makes economic sense would be a great incentive so long as it’s marketed and pushed out well. This % Could also have a flat cap amount. Tweaking this slightly I think it should be based on the fees paid to Liquidity Providers, a lot of pools have different fee structures so we should take into account how much revenue they’ve generated for the protocol and then rebate a small amount of that back, this would make the most sense.

On a side-note, UMA does a something called KPI Options where people can get rewarded for certain metrics, We could build such an option in collaboration that would only pay out should traders meet certain criteria like Volume. This could also just be airdropped to high frequency traders, and would be a constant reminder in their wallet that if they were trading on Bancor they could cash in a bonus after a certain amount of time. We could also create a pool for such an option that high frequency traders could then buy these incentives from, basically like committing to trade a certain amount.

Also, @issabobissa If we want to do a % Inflation based on revenue thats fine, but another idea would be to have a set amount of BNT to be split proportionally between all people that trade during a certain amount of time. this is what Balancer does currently for their top pairs. They vote consecutively altering the bounty.

Here is a link to that also : BAL for Gas - Balancer V1

Balancer’s Volume - Incentives Initiated 7th of March

It’s worth noting that the following two months were huge months for all AMMs (our chart looks very similar) so they are not representative of this campaign.

@sylentz

I would like to see something like FOX (ShapeShift): 5% of your trade volume is reimbursed in direct BNT at the end of the month. This directly gives you a further discount since one-leg swaps are ALL backed by BNT, so even if traders Aren’t Long BNT they can use that BNT for discounted trading further down the road. I doubt Limit orders are being used heavily since they are not guaranteed to be filled and need to be a huge amount. We just need regular traders to show up every day. We need something on the site to draw them to the site once a day and form a habit after 28 days. Currently we offer nothing unique to traders and the experience is 100% the same as Uni/Sushi/etc.

This could be abused if there’s no cap on it, for example, I could trade a million dollars a million times between stables and rug the protocol. It’s important that the rebate is less than the revenue given to the protocol. edit : if the revenue is less than the rebate even if there’s a cap on it someone can create a thousand wallets and do the same thing.

@issabobissa

• Can we create a pool that has tiny single-sided LM? That’s the same as a protocol owned airdrop. Instead of rewards going to staking wallets, they go to wallets with the parameters necessary (threshold we decide) to enable this short term incentive?

Interesting Idea, so the LM Rewards or I guess Trade Mining Rewards are split proportionally between all the wallets that contributed volume.