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How does the Incognito team determine what coins are available on "Provide"?

#1

The reason I ask, if it is one of the aims of Incognito to be the One-Stop-Shop privacy exchange and wallet, then Incognito should try to attract the attention of other Pro-Privacy coin holders and influencers.

On way to grow our community and welcome in these other “Pro-Privacy” like-minded people would be to make it easy for them to deposit their privacy coin in their Incognito wallet to earn some PRV tokens via “Provide”. This gives them some incentive to move coins onto the Incognito network and provide some yield (like what is possible via DeFi).

Once the coins are in the Incognito Network, these folks will see how easy it is to exchange via the DEX and see the instant benefits of earning interest in PRV. Even if the APY was small (E.g. 1-5%) I think this would be better than not earning nothing.

But I’m not sure how the Incognito team decide what coins to add to “Provide”.

Here are a few privacy coin projects that I’m following that have strong/growing pro-privacy communities:

I’m sure there are many more.

Hey @andrey, this may be a interesting topic for discussion at the next PRV Holders call.

2 Likes
#2

This has been answered a few times already. When there is a demand for liquidity for a certain token->PRV trading pair, Provide can help out to supply that liquidity.

In short, it works the other way around. There is no use in rewarding people for staking a certain token using the Provide feature, while there is no market for it.

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#3

In general, we are open to discuss those ideas. We are thinking to allow liquidity providers to set up trading fees, so it will be a clear incentive to add more and more liquidity.

Regarding adding coins to Provide, the logic behind is quite simple. We can add coins that bring value to the Incognito ecosystem. Let say if there is demand from PIVX community to trade on Incognito DEX we will be happy to support them.

Would you mind bringing communities of those privacy coins to the PRV holders call so we can discuss this option?

6 Likes
#4

@andrey, thanks for your reply.

I can see where you and the Incognito team are coming from by wanting to encourage some dialog with other privacy coin communities. However, I think I will struggle getting them to come along to a PRV Holders call as the saying goes: “Which came first? The chicken or the egg”.

If Incognito doesn’t add these privacy coins in the “Provide” service, then what’s the incentive for these other communities to attend a call?

But on the flipside, I can see things from your point of view, why would the Incognito team invest time in adding these coins to “Provide” if there’s no guarantee that communities will provide liquidity and use the Incognito DEX.

2 Likes
#5

Hey @Linnovations

A quick correction, If the coin is in the Incognito network, to add coins in Provide technically not difficult. Difficulties come when we need to maintain a new bridge to a new network.

For example, not we work on maintaining the bridge to Zcash & Doge simply, buy market cap and community around this spring we prioritized up those bridges over PIVX, YEC.

I agree that it’s close to checked and egg, but at the same time we are quite open for the experiments and if you feel that you can bring PIVX community into the Incognito ecosystem we could make a try. How does it sound?

3 Likes
#6

I’m here to bash this topic a bit @andrey, here’s why:

The liquidity provision for stuffs not in ‘provide’ is under ‘add pair’ in the app - that’s not very intuitive + that part of the app has a totally different ux style… It’s kinda odd…

If u would add all the new coins to ‘provide’ if possible that would be much easier to add liquidity, for me at least…

Thank you.

1 Like
#7

“Provide” is completely different from “Add Liquidity”. It is unfortunate they both are referred to as “providing liquidity/adding liquidity”.

Provide operates standalone, from the user’s point of view, no relation to whatever trading pair. While the Add liquidity feature operates on the liquidity pool of the selected trading pair directly.

With “Add liquidity” you provide both sides of the trading pair, in the current ratio of that pair.
With “Provide” the team decides how those funds are going to be used. Part of the PRV that is “provided” isn’t even going to be used for liquidity at all. It is used to stake vNodes.

Provide gives a reward, Add liquidity doesn’t.

Mixing those on the same tab would only result in more confusion.

4 Likes
#8

Hey @SecurityFirst we plan to completely rebuild ADD, to make it the main entry point for providing liquidity. Plan to start work on It after Privacy v2 is released.

3 Likes
#9

Thanks for the excellent explanation @Jamie . The “Provide” feature is truely awesome and I think it is a great way to atteact Hodlers of other coins into the Incognito Network and community.

Many thanks to the team for building this feature into the wallet.