Hey, folks! We’ve been thinking about how to incentivize liquidity providers to stake their assets on pDEX.
In the same way validators stake PRV to earn block rewards, maybe liquidity providers can stake assets to earn liquidity rewards!
Goals for ‘pDEX mining’
- Incentivize more holders to stake their PRV
- Increase liquidity pools to 1M+ PRV
- increase trading volume
What’s pDEX mining?
You probably know that 10% of block rewards goes to Incognito DAO. The DAO fund is used for:
- Protocol development
- Ecosystem development
- Community initiatives
It makes sense that the DAO should also support pDEX – with a percentage of DAO funds going straight to liquidity providers.
We are thinking of dedicating 20% of DAO funds to incentivize staking PRV on pDEX. This increased liquidity will also increase trading volume, which is good for both the community and the network.
|Monthly DAO funds||72,933 PRV|
|Monthly pDEX mining rewards (20%)||14,587 PRV|
This initiative will run for next 12 months. After this period, the community will decide whether to stop it or continue it, or whether to increase or decrease incentives.
To start, I suggest focusing on these two major pairs to maximize liquidity on the pDEX and bring on board more PRV holders.
pUSDC <> PRV
pUSDT <> PRV
This month (March), the combined liquidity of the pUSDT <> PRV pool + the pUSDC <> PRV pool = 185,000 PRV. Let’s say the initiative works, and April sees doubled liquidity, and grows steadily from there.
|PRV staked in pDEX pools||Current pool 185,000||400,000||500,000||600,000|
|Total PRV Reward (mining + trading fee )||15,336.62||16,086.62||17,086.62||17,086.62|
|Interest for every PRV staked||0.083||0.036||0.029||0.024|
|Annual ROI (APR)||99.48%||43.76%||35.01%||29.17%|
|Trading fee earnings (0.25% fee)||750||1,500||2,500||2,500|
I suggest focusing on these two major pairs to maximize liquidity on the pDEX and bring on board more PRV holders:
USDC <> PRV
USDT <> PRV
Liquidity providers will still have to supply both sides of the pair, but will earn from the PRV side.
Everyone, please give me your feedback. Share your opinions, suggestions – should we do this?
UPD: this idea is on execution Increase Incognito pDEX volume and liquidity pools (Finished)