Changes to Provide

Hey guys, as you know, all rates in Provide are variable depending on the needs of the project. This time, it’s angled towards reducing slippage.

Balancing pools

When you try to trade BTC <> XMR, BTC <> DAI, or BTC <> UDST, you might experience high slippage. This occurs because the BTC pool is 3-5 times bigger than XMR, DAI or USDT.

To reduce this price impact (especially for larger trades), we need more liquidity for XMR, DAI and USDT. As such, here are the upcoming Provide rates:

  • PRV - 28%
  • XMR - 13% (+2)
  • DAI - 13% (+4)
  • BTC - 11% (-1)
  • ETH - 10%
  • USDT - 10% (+2)
  • USDC - 8%

Changes effective Nov 10.

The next announcement has to do with how PRV in Provide will be allocated. We have recently experienced large deposits of PRV, so for the sake of transparency, here is how the core team plans to best deploy it.

Node Virtuals & pDEX Liquidity

Currently, there is ≈ 1M free-floating PRV in Provide. Here is how we will distribute this amount, in order to keep the feature sustainable while retaining the 28% APY.

  • 40% -> To run vNodes
  • 60% -> To match liquidity pairs

Distribution period: Nov 9 - Nov 25

During this period, you will see more Nodes added, using the PRV users have deposited into provide. You will also see increases in liquidity depending on the size of other coin deposits.

Let us know if you have any feedback or comments. Thanks!

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Thank you for the update Audrey… :sunglasses:

This was so needed. DAI liquidity has been absolutely horrible.

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Much MUCH appreciated! :star_struck::pray:

A dream come True!

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Thank you for providing a heads up, Andrey! So we’re talking about an additional 228 (+10%) vNodes getting added over the next 3 weeks or so. Would this bring the total vnodes run by the core team up to around 800+ by the end of November?

Hey Sid!
Yep, something like this. Your message sounds a bit like its our goal to run those nodes, which is not : )

  • we run those nodes for you (providers) not for us and collected rewards coming back to all providers.
  • if new rates for XMR and DAI brings new inflow into the liquidity pools, we will be able to move PRV back and match with required pools.
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Is there any way the community can check unmatched provide pairings? To me right now it’s kinda a black box.

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Hi Andrey,

Thanks for the clarification, and I apologize if my question came across in the wrong way. I just wanted to verify the approximate % of nodes run by the core team after these new set of nodes are pumped in and make some projections for the next 1 year (scenarios). The last time around 200+ nodes were created, this was approximately around 10-12 weeks ago I think. So I was looking to play out this scenario over the next 1-2 years, alongside the organic vnodes growth, to see where this would put the overall network growth and stake distribution.

I was just trying to understand if the rate of growth of the network ends up being faster than the rate of adoption/usage - which is a key factor in determining the underlying value in the mid and long term. At the end of the day, we all want the value of the project, the network, PRV token and overall usage to go up - but probably at a rate that is at least, at par with the rate of the network growth (preferably faster). But if the network grows faster than the value, it challenges the sustainability of the overall mid and long term value, and instead creates a perception of diminishing returns over time. I completely understand that the core team needs to do this to continue supporting the self-funded, self-sustaining incentives that are fundamental to lift this project off the ground and drive future adoption. We just need to think how we don’t end up in this vicious cycle that every time we want to support the next chasm of growth, this comes out from a growth in the network that hurts the returns of the community of validators without impacting providers. Meaning that at some point in time - we’ll need to do the math of figuring out if we need to reduce the %APY for PRV token to bring in PRVs needed for liquidity but not so much that it will constitute creation of additional vnodes if the network growth rate is already at par or faster than the value appreciation.

That’s all I was trying to figure out! :slight_smile:
I hope that clears the air! :slight_smile:

What do you all think?

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Hey @sid I also didn’t mean to be rude:) I think we are on the same understanding that the most important is the utility of the network for healthy growth.

Last month we were pretty quiet, tried to look back on the experience we’ve gained. Tried to look forward and prepared a road map for the next year (will be announced soon). I don’t want to run ahead just want to say that In the road map we aim to solve most of the issue our community raised during the summer and autumn : )

Give me just a little bit more time to clean it up and I’ll be happy to discuss further.

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@andrey If there is a project that wants to list a token in pDEX and have a way to attract liquidity from users, what’s the way to follow? Can them ask incognito to list the token under provide for example, paying some fees to incognito to cover the passive income associated to the provided liquidity (estimation)? Or the only way is to wait for the new provide system?
What is the simplest method to track a liquidity provide operation and use that info to create a reward system (inside or outside incognito) targeting holders for a particular project?

Hey @Horus87,

From a technical perspective, any pCoin can be added to provide.

Option 1
If there is a demand from the community (our or external) to maintain liquidity and trade their coin on pDEX we will be happy to support and potentially add them to provide.

To understand the demand we recommend them to add a pair with their coin and pitch to their users to add initial liquidity directly to pDEX via ADD functionality (it’s permissionless)

Once the trading volume for their pair is ≈$10k day, we can consider to adding them into Provide.

Option2
Besides the Provide, they also can set up their own Liquidity Mining program.

  1. They set up initial liquidity pCoin <> PRV
  2. Define the condition (reward rates, timeline, etc) for Liquidity providers who wants to participate
  3. Then they can to do daily or weekly snapshots of liquidity providers for particular pair and reward them according to the defined conditions.

With the second option liquidity providers became owner of the pair and able to maintain liquidity and modify condition without interaction with incognito core team.

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Does it automatically withdraw rewards and provide more pool by itself?

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nope, it’s not automatically, user has to initiate withdrawal for his/her rewards or liquidity.

UPD: @ADcaprio quick clarification, if you ask from APY perspective, you do not need to withdraw and submit funds each time, it’s compounded automatically.

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I see, hope the team plan that functions for the next big update. It will be very helpful for us

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If you have more ideas or suggestions what should be added/improved, strongly to recommend you to share your thoughts here -> App v.4. The most useful ideas might be added to the next sprint)

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Thank you Andrey, really complete answer!

I dont think i have enough chainlink to get 10k daily, but if it was on the provide list I would definitely put all mine up.

Hey @JoyRaptor I think the main question here if Links community would like to trade on pDEX ?

If there is demand, make sense to move in this direction. Could you bring this idea to thee Link community to test the water ?

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Useful information, thanks for the update, 28% is a good rate

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