Hello, I would like to propose to the DFX community continued liquidity mining incentives for the TEL/DFX 50:50 pool on balancer. Link: Balancer
I believe our initial 90-day trial period was highly successful. The TEL/DFX pool became the most liquid pool for Telcoin on balancer and the most liquid spot to buy DFX on any market. Both communities came together for this initiative, and I think we should continue it. Since DFX is playing a vital role for Telcoin, when it comes to the SMS (Send Money Smarter) network. It’s likely Telcoin would be interested in incentivizing this pool again as well. That’s why I’d like to propose we make this a permanently renewing pool for DFX rewards. If DFX is incentivizing pools on Polygon, this pool should remain.
Motivation
The motivations are significant, as currently buying DFX can be a struggle if you would like to avoid ETH fees. I think it’s in DFX’s best interest to provide a permanent low fee option for swapping for DFX on Polygon. Not to mention, if we can keep this pool with large volume, Telcoin is likely to permanently add this pool to the Telcoin App, once staking pools are enabled with V3.2+. Imagine having an easy-to-use app to buy, and stake DFX. With potentially millions of users getting eyes on both our stable coin pools as well as DFX token.
Specifications
The pool already exists, but I do believe we need a new contract. As currently Telcoin needs to airdrop rewards. This should be fixed before implementing this pool, that way we no longer need to worry about airdrops and can claim as we see fit. I also believe the DFX rewards should be increased for this pool but the monthly rate can be reviewed. Let’s keep it in line with our CADC/USDC Polygon pool of 32,000-50,000 DFX every 30 days (the amount can be debated). These increased rewards will help draw in a larger liquidity pool for DFX on Polygon, which will allow larger swaps for little slippage.
For
Pros
DFX community benefits
Telcoin community benefits
Provides an easy way to acquire DFX on Polygon network
Against
Currently no other liquidity mining incentives with other pairings
Yes this pool was my favourite 50/50 pool because i support tel and dfx and there wouldnt be a 50/50 pool with unstables i would be more comfortable in for the long run
Every liquidity mining incentive should have an end date. I would probably suggest something like a 1 year liquidity mining timeframe for the TEL/DFX 50:50 pool (then bring it to a vote once again as crypto moves quickly and sometimes these incentives will need to change). We would also need to structure a more formal way to determine the reward amounts if it is to be dynamic. If could also stick with the current scheme of 33,333 DFX per month.
I believe it’s a great idea to keep incentivizing this pool with dfx tokens, as it is the most liquid market for dfx on polygon. In addition to that, it’s also quite important to maintain this level of liquidity to keep this pool integrated in the telcoin app.
But wouldn’t it be interesting to add a small portion of usdc as well to increase the volume?
The pool would then be eligible to be used in the telcoin SMS network, which I believe will be a major volume driver in the future.
More volume would increase the fees earned by the liquidity providers, making it even more appealing to participate.
10% of usdc would be somehow negligible in terms of Impermanent loss.
I don’t think the rewards should be permanent as well. LM is not a sustainable yield source. Yes, the pool has been successful in bringing in liquidity, and in turn, providing a liquid market for DFX (and TEL as well) but if there is low liquidity utilization then I think the LM rewards should be stopped or at the very least reduced or re-examined.
Sushiswap still remains to buy dfx despite only having $180k in liquidity pool assets.
And if and when V3.2+ launches and there is large volume coming in, the base yields from swaps should be more than enough for long-term focused DFX/TEL LPs already bullish on both DFX and TEL.
to buy dfx despite only having $180k in liquidity pool assets.