I think its all much complicated than that…
General idea is cool! And at first glance I like it alot (as a guy, with little money, who want to get good rewards as much as possible)
But. Just look on it from different perspective…
1) Whales
on the market there is maany whales with huuge amount of money. So, if opium pool will gives it participants BIG rewards (300% APR for example or 30% per month of staking), this immidiately will attract attention of these whales… because it in fact “easy money” with little risk involved.
And as a result - me and you (if you not a whale) stake ours “little money” and fill 1% of the total pool size, but all these whales fill another 99% of the pool…
Aaaand at the end these whales gather 99% of generous rewards. Aaaand … I think you pretty know what will be next.
2) Liquidity problem
Ask yourself - what IS actual purpose of these pools ?
The answer is - providing the supply for insurance products on platform so, that they are satisfy demand.
What we have now ?
Supply is MUCH more than demand.
So, I personally think in this purpose-context, the platform SHOULD rather cut! the rewards for LP’s. (yes you can blame me haha but this is pure logic…) aaand instead! Opium should incentivise DEMAND side!..
…
Ok…
Now lets talk about what we can do with that…
- Whales thing…
I think we can (actually SHOULD!) introduce some kind of “bonding curve” for LP’s. Thats my thought.
What thats mean …
Its mean that peoples with LESS stake have more reward\stake coefficient than peoples with MORE stake.
For example…
if you stake 100$ you get 1 $OPIUM per 1$ staked.
if you stake 1000$ you get 0.7 $OPIUM per 1$ staked.
if you stake 10000$ you get 0.5 $OPIUM per 1$ staked.
if you stake 100000$ you get 0.3 $OPIUM per 1$ staked.
etc…
THis approach will make harder for whales to “frain” all the reward pool. And allow ordinal peoples to be profitable even with little stake.
2) Liquidity problem
so… as I describe above - as for now we actually dont have to attract more liquidity for supply side. And we should attract demand side.
How?..
I dont know haha )))
marketing and blablabla…
and $OPIUM rewards for demand side ofcourse… which is already descused in this thread :