Discussion: Liquidity mining programs for $OPIUM token

Governance
1

Besides the proposed Liquidity Mining program on Bancor the only active liquidity mining program is 1INCH<>OPIUM pool on 1inch Liquidity Protocol at the moment.

We want to start a brainstorm discussion here: which AMMs, pairs and terms we would like to see for liquidity mining and why!?

After the discussions we can formalize the proposals to vote on.

Possible AMMs:

  • Uniswap V2: Network effect
  • Uniswap V3: Outperforming V2 already, but more advanced LP
  • 1inch: Already existing liquidity
  • SushiSwap: Already existing liquidity

Possible pairs:

  • Stablecoins: Will make $OPIUM stronger to stablecoins’s value
2 Likes
2

A stablecoin pair would have some benefits.

1 Like
3

USDT? Just to make sure the correlation with ETH is lower?

4

I don’t see why we need to spread liquidity even more… It’s already razor thin as we speak.

5

Yes, because there is no LM at the moment, we know what can happen once we decide on LM, right?

Some projects like BarnBridge do a huge distribution and some do smart distribution, that is why we can discuss our own way here, volatile token is not good for being part of DeFi ecosystem (integrations, oracles, loans against it etc)

We should aim for higher volumes and less volatility, whatever market want to price it, than it is a good basis for integrations and utilities

6

Thin market depth only makes more opportunities for arbitrageurs. You should have stick with one mining program e.g. 1inch until more opium was released / greater depth. There is just not enough opium in circulation atm to spread along all the markets.

1 Like
7

USDC seems to have less fear of systemic risk than USDT.

1 Like
8

In order to get higher volumes you need market depth on the Opium side and best way to do that is to have the rewards for the LPs be enough to incentivize putting the rewards right back into the LP, i.e. deepening the pool over time which should blunt the inflationary effect. Let the market set the price where it wants to as the platform grows the value. Having liquidity on a DEX on ETH is important as an entry point into any other L2. The 1inch pool is still going despite the huge impermanent loss, what is the argument against incentivizing this pool to make it deep enough to absorb the daily volume that is traded on DEX without wildly fluctuating the price?