Summary
We propose to launch a liquidity mining campaign for $OPIUM liquidity pool on Bancor.
Rationale
As you all know, the proposal to whitelist the $OPIUM token to Bancor with 150k BNT co-investment passed the voting in Bancor DAO.
This will allow $OPIUM holders to provide liquidity on Bancor and have following advantages:
- Provide single-sided liquidity with $OPIUM token. Up to 150k BNT will be provided by Bancor protocol.
- Eligibility to Impermanent loss protection
Read more about how single-sided liquidity and Impermanent loss protection work here
Once the pool’s liquidity increased and started accumulating fees we can create a proposal in Bancor DAO to implement a liquidity mining program from their side as well.
Terms
We propose to discuss terms in the government forum, but we expect high liquidity mining efficiency because there is no impermanent loss risk.
For example, aiming for the pool size of 10M$ community may propose 20’000 $OPIUM / weekly which will result in 30% APR without any risk of impermanent loss*.
*subject to minimum 100 days holding requirement of Bancor.
TODO
- Reward liquidity providers to OPIUM<>BNT liquidity pools on Bancor with $OPIUM tokens via DR.OPIUM mechanism.
Executors
5 Likes
I don’t think this is a good idea, we should spend more Opium on providing liquidity to the protocol.
Liquidity is already spread thin as we speak.
I agree if it’s guaranteed that this program lasts for atleast 100 days. Which I think will never happen looking at the history…
1 Like
I am totally vote for this proposal.
I have $OPIUM and want to hold them in long term. And looking the ways I can put my asset into work. With minimized risks. I dont want to be LP in classic form with two assets involved.
Yes, @dennis you are right about thin spread in $OPIUM liquidity on dexes… but most peoples just dont know about bancor IL’less option. So, if opium will start to push this information more actively through social channels I am think in one year period most liquidity will migrate to the most effective (for LP) dex (which can be bancor).
And in the era of dex aggregators its not that a big problem if liquidity spreaded through many different dexes.
speaking of LP mining cancelation issue - opium team already mention that it was something related to miss-comunication and they in general not against to do extra reward LP (which is discussed in neighbor thread) .
So is it necessary to propose a new vote for bancor lm?
imo, Bancor IL-less lm is really good for providing liquidity for early project
1 Like
If you feel enough support, you may want to create a proposal vote on the Snapshot or start signalling vote here, try to collect the feedback and take as much as possible into account