50,000 $FLASH Liquidity Mining Proposal #XIOfeedback

This is a proposal to start a liquidity mining program to reward LPs who add liquidity to the flashstake protocol.

50,000 FLASH used for 30 days (March 1- March 30) = 1666.66/day FLASH rewarded

Based on the 1666.66/day metric: APY math (500k):

  • If total FLASH liquidity in FLASH Protocol = 500,000 then for every 300 FLASH you have in protocol you get 1 FLASH per day as a reward

  • At 300:1 liquidity:reward ratio, the APY = 121% APY

APY math (1mil):

  • If total FLASH liquidity in FLASH Protocol = 1,000,000 then for every 600 FLASH you have in protocol you get 1 FLASH per day as a reward

  • At 600:1 liquidity:reward ratio, the APY = 60.5% APY

APY math (2mil):

  • If total FLASH liquidity in FLASH Protocol = 2,000,000 then for every 1200 FLASH you have in protocol you get 1 FLASH per day as a reward

  • At 1200:1 liquidity:reward ratio, the APY = 30% APY


#XIOFeedback

Let us know what you think! Do you think we should do this or not? What would you change or adjust?

Official vote will start on Monday February 15th using Snapshot

12 Likes

I think the possible high APYs explained could be pretty attractive on top of the already high LP fee rewards.

I think an document similar to ‘Flash in 5’, specifically aimed at marketing to LP providers could really help boost this initiative further as it could give LPs a reference to refer back to or teach newcomers.

This ‘FLASH LPs in 5’ document could contain a graph showing APY% Vs FLASH liquidity in protocol, for this specific initiative.

Thanks for the live stream today, very informative

Sounds like a good idea i liked it we should definitely do this probly the apy could adjust to 5% less and increase depending on how long liquidity is provided

Here is a link to a livestream (starts at 43:30) where they talk about the liquidity mining for anyone curious and with time to kill :slight_smile: $FLASH LIVE: Flashstake AMA (UFO + Liquidity Mining Update) - YouTube

2 Likes

I like it because I’m already providing liquidity and it would be a nice bonus for me, but from the projects perspective, do we need to incentivize the LP in the flash protocol? My understanding was that the liquidity there is already pretty good. Another concern I have is if it only runs for one month, are people just going to remove it after the month? One reason the XLP for XIO works so well is because it rewards long term involvement. The above proposal seems like it would just provide a short term boost.

1 Like

So it turned out they made a new video just about this proposal. For some reason it doesn’t show to me if I click on the blockzero youtuber channel (found it through twitter) so for anyone else searching for it here: ⚡️ LIVE: 50,000 $FLASH Liquidity Mining Proposal #XIOfeedback - YouTube

1 Like

GG WP i totally agree, i would just ask if the minimum would be 50k FLASH? or is that stated just as an example?

1 Like

I am in favor of a liqudity mining program (since I am a LP :grin:).

But I would prefer that the formula to calculate rewards was more “linear” and not of incrementals (is that a word?) of 300 - 600 - 1200 tokens.

Maybe adjust it so it will scale every 100 flash tokens in the pool. Otherways people with 601-1199 flash tokens in the pools (which is still a significant amount of money) would be left out of the program once the apy decreases in the 30% range

2 Likes

I believe the system proposed in this topic is a linear system. There are no increments or at least that is my understanding. The three different APY’s given were just examples based on how many FLASH tokens are in the protocol.

I am a fan of this proposal! I think we should absolutely do this but we should make it clear that this is only for one month to see how things go to set expectations. The only thing I would change is the total amount of Flash given for the month but I think before we explore this, it’s worth trying out and seeing how it goes! We can always make adjustments in the future if we decide to continue with this liquidity mining programme.

Something to consider here is that we will need a good marketing campaign, maybe some catchy videos to show the insane amount of fees one can generate by being an LP (compared to Uniswap) as well as the rewards that will be given as part of this programme.

1 Like

I really like this proposal! I was already thinking about this before, as many other projects offer great APY’s for liquidity staking.
Since Im liquidity provider from day one, I think this is a great idea to attract some more people to flash protocol and give it more sustainability! The ratio’s and APY’s sound good, go get it deployed :wink:

I like this idea as well. One of the topics in the videos was whether we should incentivize any flash pool or just few select ones. Personally I would rather incentivise any. The most popular ones are xio and eth and I think if someone has eth and xio they are better off putting it into the XLP program (the return is higher). If we incentivize any pool we won’t create competition against ourselves but instead allow people to use tokens that would just sit in their wallet.

I think that we could start with max APY, it’s a good advertising. After some time we will decrease it based on liquidity in the app. and in every case, more liquidity there is less APY as reward

I agree to this, not sure if the formula is linear, but it seems that you need at least 300/600/1200 FLASH (depending which Tier) to get something…and that will left out people with aprox 2k usd in the protocol if the total flash liqudiity is greater than 2.000.000.

Also, which is the metric you will consider for “total FLASH liquidity”? the one that says " Locked Liquidity" (currently $775,471.59) or the one that says “FLASH Pooled” (currently 397,067.57)??..because if is the first one, I think the first tier will not ever occur as we will get 1 mil pretty fast, and more if this is approved as people will start adding liquidity because of the rewards (even myself, although I’m already providing since 1 month ago I would add more)…so if that is the case I would suggest moving them off a bit, instead of 500k-1m-2m I would change it to 1m-2m-4m at least.

Overall I love the idea and I think it will add a ton of liquidity to the protocol that nowadays is somehow little.

I am very much in favour of this proposal! There can be more options for the formula, but this seems right to me.
By the way. I am very happy that I decided to join the Flash liquidity pools since the beginning of January!

I think this would be better if you could reward new flash liquidity added and not flash already in the protocol. It would be a greater incentive to add in.

While I have been a quite vocal advocate of a liquidity bonus program to external AMM (-s), such as Uniswap or Balancer, I do like this first ‘one month internal bonus program’.

This should give us a fair indication of whether providing a bonus to the FLASH dApp LP, will have an effect.

Providing liquidity in the FLASH dApp is already quite lucrative though, which I guess is my main gripe, as in ‘do we really need this? Is this money well spent?’

We will see=)

The second question, which I find quite interesting, is whether we should provide a bonus also to past liquidity providing.

Honestly if I were to chose, I would probably provide that bonus first, since those were the bigger risk takers.

Now we “know that FLASH works” and that the community does have enough confidence in the protocol and dApp to provide substantial liquidity and Flashstaking for several years.

From a strictly selfish perspective, I would be very fine with whichever way we chose to go.

Very exciting to see this and I am in complete favour of this proposal as:

  1. It allows us to test waters before announcing any major commitment on liquidity mining rewards.
  2. Makes total sense to only reward liquidity on flash protocol…
  3. As this would work on top of the already great LP fees …the actual APY would be amazing

Love it!

1 Like

I like the idea, it will provide an incentive. I also agree with others that there needs to be more focus on marketing, in current market conditions people are going crazy for passive income.

maybe some catchy videos to show the insane amount of fees one can generate by being an LP (compared to Uniswap)

Yes! Great idea Umar. I don’t know that we have specifically highlighted the Flash LP fees. Example: Flash Dapp LP fee is 1/5th of FPY vs 0.3% Uniswap… 1/5th of 27% today’s FPY is 5.4% which is 18x the fees of Uniswap.

1 Like