Liquidity Mining v2

DAppNodeDAO
1

Liquidity Mining v2

We need to do better in our Liquidity Mining. We’re throwing $NODE by the buckets and:

  1. Liquidity is not deep to avoid big price movements
  2. Nothing keeps people from dumping

Our vesting schedule was innovative at the moment, and the NODEstream has been copied by other projects and our Liquidity Mining was according to the standards at that moment… but things move fast and there are better options.

That’s why I present a different v2:

Carrot.eth

Carrot is a new protocol by DXDAO, aimed exactly at incentivizing the right things efficiently, gradually, and according to goals.

Campaign 1: What will the average TVL for the Swapr xDai NODE-WETH pair be from 2nd March to 27th April (56 days)?

Details

This campaign will pay out in the range of 250K USD to 1M USD, with no payout when the result is below 250K USD and increasing linear payout over the range with a full collateral payout when the result is 1M USD or higher.

Calculating the final answer

The dedicated chart on the official carrot.eth frontend will show daily TVL of the pool in the specified date range. Each bar represents a TVL reading taken each day at 12:00 UTC. To calculate the final result, use the data for each bar and calculate the average between all the charted values.

  • Why Swapr? We are speaking with them and have offered to incentivize the farming with SWAPR token too, so NODEstakers would benefit from this incentives too.

Campaign 2: What will the average TVL for the Uniswap v2 or Sushiswap Mainnet NODE-ETH pair be from 2nd March to 27th April (56 days)?

Details

This campaign will pay out in the range of 250K USD to 1M USD, with no payout when the result is below 250K USD and increasing linear payout over the range with a full collateral payout when the result is 1M USD or higher.

Calculating the final answer

The dedicated chart on the official carrot.eth frontend will show daily TVL of the pool in the specified date range. Each bar represents a TVL reading taken each day at 12:00 UTC. To calculate the final result, use the data for each bar and calculate the average between all the charted values.

Campaign 3: Will the average price of NODE from 30th March to 25th May be above 0.4 USD to 1 USD?

Details

This campaign will pay out in the range of 0.4 USD to 1 USD, with no payout when the result is below 0.4 USD and increasing linear payout over the range with a full collateral payout when the result is 1 USD or higher.

Calculating the final answer

The dedicated chart on the official carrot.eth frontend will show price data for NODE in the specified date range. Each data point represents a price reading taken each day at 12:00 UTC. To calculate the final result, use the data for each data point and calculate the average between all the charted values.

I’ve started a calculator to play with the parameters, but I didn’t have time yet to include the reward for the price campaign. Please make a copy and add the Price Campaign reward to the APR numbers and share it with the rest of us! Find it here.

My proposal is to spend 300,000 NODE in every campaign.
900,000 total.
It’s hard to calculate approximates on how much of this would be claimed, but this would give us runway for about a year. Nevertheless, we can always modify the next campaigns!

Also, in order to decide whether we incentivize Uniswap or Sushiswap in mainnet, I suggest to use the one with the deepest pool at the day of deployment, but we can decide in advance!

So:

  • Please check the numbers - any counter-proposals? Concerns?
  • Uniswap or Sushiswap?
2 Likes
2

Is there a way to increase the fee for the pool?

Currently UniSwap takes a 0.3% cut of each swap and adds it to the pool to reward the liquidity providers. Sushiswap takes a 0.25% cut and adds it to the pool.

Given the slow and steady price declines in NODE, it seems to me that is not enough of a fee to offset the risk of loss.

Is there a way to change 1% swap fees?

1 Like
3

Should we be doing something with the GNO-NODE pool on the Gnosis chain?

Right now that pool contains the most liquidity. It seems like we should be supporting it. It also has the lowest gas fees.

1 Like
4

Do you have a target in mind that you think we should be aiming for?

How much liquidity should we want to have in the pool?

Will individual stakers have the right incentive and ability to impact the Carrot campaigns? Are there examples of where this worked for other tokens?

5

I think carrot would be a good idea. I’m reaping in NODE at a fast rate… fast enough to still be “UP” liquidity mining (on paper) if I came to sell my NODE I’m not sure at present if I’d find a buyer. Not much point owning something
If it’s worth $0.28 but nobody wants it. Just look at the daily volume of traded NODE…$4,100 :see_no_evil: I’ve lost nearly 1/2 my WETH due to the drop in NODE. I don’t mind taking risks but NODE is VERY risky in its present form.
Until people see utility in NODE the liquidity and NODE value will remain on a slippery slope. If I withdrew my LP the price of NODE would drop significantly because there aren’t that many investors. Let’s face it DAPPNODE is a niche product with a specialised user. 32 Eth to run a validator and 2000 Avax too. Not many people have this clout.

I use apy.vision https://apy.vision/ to monitor my LP positions on various blockchains. To use it in PRO mode I have to buy VISION token… that’s utility for APY. I’ve no idea what we could do to make NODE more attractive on the outside. We have a great product it’s just not got visible artwork that attracts buyers.
Personally I’ve sort of said … “hey I’ll stick with LP mining on UNISWAP” I’m here for DAppNode & NODE. If I sell I’ll just make the problem worse. We’ve already witnessed people manipulating NODE for profits and for voting reasons. I mostly stick with things and eventually they come out trumps. I’m sure Dappnode and NODE will eventually trump too. Let’s face it we’re in a bear grip at present and people put their cash into safer vehicles. Plus war in Europe is sort of knocking at the door. Hence I’m in long term. Yes I’m here for profit too… I’m sure everyone is too. Even if they won’t admit it.

Oops a bit of a long rant, sorry. Probably off topic at times but I think it’s relevant.

4 Likes
6

Can’t agree more ！This is a realistic and important problem and we look forward to a good solution from the DappNode team！

7

I cannot agree more. We are working on ways to give more utility value to $NODE apart from Governance. Rest assured, Governance is also being worked on with the DAO proposal.
In summary - Liquidity Mining is a means to an end: a menas to create liquidity so both the ones who want to either participate on governance or use the token for its utility can acquire it and those that are being rewarded with it have an easy way to move to other ecosystems too.

2 Likes
8

As stated above, each pool will start rewarding at minimum target of 250k liquidity and rewards will increase linearly to a max payout if the pool has 1M liquidity.

I’m not sure I understand the question. The carrot campaign is set at the beginning and cannot be modified once is deployed. See carrot.eth.link for other examples of projects using carrot!

9

The carrot is set in stone… if the different criteria aren’t met then there’s less reward or none. It’s like distant goal posts.

1 Like
10

UPDATE!

Alright, so the latest design of the LM program will allow for the carrots to assign vested tokens just like the current LM program! This will mitigate concerns of dumping as it will follow the same vesting schedule as it has been for now.

When redeeming the carrots farmed, a certain amount of tokens will be allocated to the user in the vesting contract, and they will be able to withdraw the corresponding amount and will have the rest still vested.

carrots
carrots1729×1089 57.5 KB