Proposal Rationale
Bring liquidity to honeyswap to ultimately drive up adoption of the platform. This double liquidity pair should have twice the effect as a honey pair, so it should be widely successful at bringing in liquidity. We have seen this on platforms such as Uniswap with their funded liquidity pools.
Expected duration or delivery date (if applicable):
Funding the farm for 1 month
Ethereum address where funds shall be transferred:
0xFFf8d28DdC25B6D291D5C5AdA4b04b9443673b56
I support this. Right now anyone who wants to trade ETH has two options:
Custodial exchanges: Low fees, but not your keys.
Decentralized exchanges: High fees, but you own your keys.
This prices some people out of self sovereign cryptocurrencies. With HoneySwap people can get started with very small amounts of capital. This allows people to get into cryptocurrencies without having to choose between trusting a centralised operator or paying high fees.
For people dipping their toes into the water I think BTC and ETH are often the first tokens they want to hold. From there they can explore community currencies such as HNY. As such, I’d like to see support for wETH and wBTC pairs. This would incentivize more HoneySwap liquidity, support crypto enthusiasts who are priced out of mainnet, and give hodlers exposure to both wETH/wBTC and HNY via liquidity mining.
The wETH - xDai pool is an important pair. I think its wise we incentivize it and see what happens. We can always come back and reaccess. 125HNY is decent, taking account the 600HNY currently being farmed across the other farms this will bring the total HNY being distributed to 725HNY which is roughly 10% of the common pool. Its significant but its a judicious use of funds. Plus it aligns with our current goal of HNY distribution.
Two things regarding discourse polls and polling in general.
Always make an abstain so people who either can’t or won’t vote yes have a place and then ask them to state why in a post in the thread.
You pick 100, 125, and 150 yet no 75, 50, 25, or even 0.
Your poll is flawed from this perspective as it prefers a particular result vs actually allowing the community a solid range of choices including 0.
You completely ignored my suggested 50 btw and also give no reasoning to back up 100-150.
So far while there is evidence that HNY incentives increase liquidity and trading there is no evidence regarding what rate of return will retain liquidity and volume.
Right now people seem to be overly hot to pay out at rates of 100-200% return just to get ‘some’ liquidity. I don’t think anyone has looked at returns offered by other LP staking contacts (these are running on rough averages in the 20-40% ranges - for the most part).
Also the prices on these due to the high yields are tending to ‘decay’.
If the return is 100%+ and the price decays to 50% did you really earn anything?
The above is the whole point of using conservative numbers like I posted.
They are probably more sustainable.
The reduced rate of inflation may mean a more stable Token price
The rates are not overly competitive.
There is no guarantee paying more will get more liquidity or trading. In fact this was one reason I was for dropping the 3 farm payouts to measure any change in farming activity/liquidity and/or volume. 50% is still higher than most of the other major farms in existence.
