So after October the current liquidity mining program happening in the v2 uniswap pool will come to at an end.
For a variety of reasons discussed on the tokenomics workstream call and elsewhere I think it is vital to continue liquidity mining for the uniswapv2 pool (where the majority of liquidity currently reuses) as well as expand liquidity mining to other protocols to create a broader and deeper range of liquidity pools. This would also allow arb opportunities to develop across different AMM pools which would strengthen the over liquidity of the FOX ecosystem.
I am curious what the community thinks is appropriate and would like to humbly suggest some starting points to get this discussion going and make sure we are ready to go well before the current liquidity mining program ends in October. I believe this is important to keep liquidity active and farming opportunities present to help the ShapeShift DAO growing during its 1st year of existence + further decentralizing the governance of the DAO in a way that awards active contributors (LPs).
I would suggest the following:
Uniswap v2: fund an additional 9 months of liquidity mining with 1/3 of the current rewards pro-rata over the next 9 months. This would mean the same allocation as the current program (15,760,000 FOX) but spread over 9 months instead of 3. We do not need to keep as high of an APR to still have a very competitive apr and keep liquidity active in the pool over another 9 months. I think it is vital to keep this pool incentivized as it is where the majority of the liquidity for FOX is today and we do not want to risk destabilizing that at such an early stage for the DAO.
Sushiswap: I think we should also fund 9 months of this program with the same amount of the uniswap pool (15,760,000 FOX over 9 months from the start of the program, and perhaps we should start this one prior to the uniswapv2 one being renewed so there is no gap in liquidity mining). This apr will likely end up a bit higher than the uniswap pool if sushiswap adds their own sushi rewards on top. This create a deep and important 2nd pool which also lets us build a bridge to the strong sushi community and ecosystem.
Bancor: I strongly support the ability to have a deep pool and single sided liquidity mining in bancor. To this end, since bancor will provide their own BNT rewards for the pool, I think we instead incentivize the BNT holders to vote this liquidity mining in by extending the airdrop of FOX to anyone who would have qualified as a BNT holder under the current airdrop qualifications (snapshot of June 9th, $1500 threshold, 200 fox each). We would need to figure out the amount of addresses that would be eligible but this may be a great olive branch to their community that would encourage them to engage BNT rewards for the FOX pool in bancor without requiring any fox to be incentivized on direct liquidity mining (still not even sure that is possible in bancor pools or what contracts we would use as they tend to be incentivized via BNT rewards).
I also think discussion around some other protocols is also worthwhile (like cowswap, honeyswap, polygon) but don’t know enough about those to recommend liquidity mining programs in those pools at this time.
I am by no means tied to any of the above, but I think this serves as a good starting place for discussion on continuing liquidity mining programs past mid October and look forward to community feedback on which pools, length of time, and amount of fox allocation from the treasury to fund these programs.