The Liquidity bootstrap campaign ends tomorrow and the results were not that bad, but we must do better.
Since all limitations will be disabled, it’s going to be easier to add liquidity.
The current liquidity levels are a good start, but we’ll need even deeper pools.
So I’m proposing that we continue with the Liquidity Provisioning campaign.
What it means?
More incentive for providing liquidity, which should translate in more Liquidity Providers joining in.
How will it work?
Liquidity Providers will add ETH and wZNN to the pools and then stake LP tokens in Orbital.
Based on how much ETH has been staked in Orbital, the rewards distributed daily will increase.
Example:
0-99 ETH staked in Orbital means 561.6 ZNN + 1250 QSR are distributed daily (1X multiplier)
100-199 ETH staked in Orbital means 1123.2 ZNN + 2500 QSR are distributed daily (2X multiplier)
…
900 - infinite ETH staked in Orbital means 5616 + 12500 QSR are distributed daily (10X multiplier)
But instead of having such big steps, we could break them down to smaller 10 ETH steps.
Example
10-19 ETH would get 1.1X multiplier
20-19 ETH would get 1.2X multiplier
…
100-109 ETH would get 2X multiplier
and so on
What needs to be decided?
How long the campaign should last, since the Orbital funds are limited
The maximum amount of Orbital funds that should be allocated to the campaign
The ETH steps for calculating the multipliers (100 ETH in example).
What’s the purpose?
Attracting more liquidity while making sure it gets more profitable for Liquidity Providers as the multipliers go UP. So we need to calculate the ETH steps carefully and that’s something we shoud do together.
100k Znn + qsr allocated for campaign on top 561 daily emission from nom. Let it run until all the funds are distributed. I like your calculations, I would stick to your calculations.
Will the multipliers results in LP providers earning more as the ETH pool grows?
For example, if I stake 1000 wZNN for 12 months when the ETH pool is 99, will I make more when the pool is 199? We need to make sure the yield at the break points is going up constantly?
Also, I think we should first target using 10% of the incentives and then reassess. How long will 10% last? I think we should look at this in 60 to 90 day increments.
Full disclosure: I didn’t make any calculations yet, still figuring out how to do those calculations.
Yes and we should consider calculating the multiplier based on the amount of ETH staked in Orbital, not how much is in the pool.
Yes, the Orbital multiplier is added on top of the LP staking period multipier. So if you staked 12 months, you’d get 12X multiplier. If the Orbital multiplier is 2X, then you’d have 12X * 2X = 24X.
Correct me if I’m wrong:
It seems like we have full control of the orbital multiplier mechanics, as opposed to the LP staking multiplier which is already a deployed embedded that mimics the QSR staking mechanic. (Would have loved to extend that 1-year maximum lockup period, but that’s a topic for another discussion)
If my assumptions are correct, we could also look at other successful defi protocols and mechanics (i.e GMX) and see if we can get some inspiration for things to try further down the line (even fork their battle-tested code) even if deployed in an extension chain. Particularly, GMX punishes unsteakers by slashing their boost percentage.
That said, particularly now, smaller ETH multiplier steps as suggested will definitely help our community rally behind the initiative, but we’ll need to remain flexible and vigilant as we can ‘go viral’ so to speak anytime. I vouch for a 60-90 day reasses period but to remain open to changing policies in a shorter timeframe.
Before we decide about max orbital fund and periode of campaign, better to determine the target “deeper pool staked” so we can decide about campaign periode base on the target
We need to keep the notice: too deep liquidity make more narrow room for ZNN price going up or down
It’s a simple formula:
Orbital Staked ETH = (Orbital’s Balance of ETH-wZNN LP ZTS) / (Total Supply of ETH-wZNN LP ERC20) * (Amount of ETH in the ETH-wZNN Pool)
