[Outdated & Changed] Liquidity v2

At the moment pdex is the most significant application on incognito. If we argue that staking (and running a node) is for the safety of the network, then pdex liquidity is for the vitality of the network. If people who “stake” get rewards, why shouldn’t who “provide”?

An AMM needs both liquidity and arbitrage in order to attract users. Charging a percentage fee based on trading volume of the latter and give them to the former isn’t fair, because the volume on the latter is many times bigger than the former. Actually it is 5 times according to incscan.io, but the site lacks duration or per-pair data.

Alternatively pdex can waive trading fees for those who provide, or for those whose trading volume goes above certain threshold. I’ll be fine if we do this, but such rules can become complicated (see for example trading fee structures on binance or coinbase), hard to implement, or go against privacy.

1 Like

I disagree that PRV is too volatile. Thanks to pdex and arbitrators, PRV price is as good as a general market indicator. At least there is a strong correlation between its price and BTC/ETH, no more volatile than them.

1 Like

Sounds good!
I see the rates are back to normal untill ADD V2 is live…? Is there a date for that? How would it work?

Hey guys, this is a quick update for the APY changes on Provide, sorry and thanks for your understanding!

4 Likes

As someone that was attracted to the project by the provide rates & subsequently moved a fair amount of funds in, my liquidity will be removed under these current plans. I have been burnt by impermanent loss before & the amount of exposure to PRV I would need to keep my liquidity in the project via ADD v2 blows my risk tolerance entirely out of the water. I do like the project. I do like the privacy element. But if I need to pair my assets to PRV to continue yielding here then 80-90% of my liquidity will be leaving.

1 Like