Just want to give my honest oppinion. I hope I understod everything correctly. The Video and the Presentation was great! Great scene from bruce lee as always and very informative, thanks Zachary!
The liquidity provider gets extra rewards, just by adding throught your portal than through eg. uniswaps, but still provide liquidity to eg. uniswap. that is a very neat feature and who doesnt like any extra rewards! No matter what the price of aqua is.
I dont see any use for holding the aqua token itself, than to just quickly sell your aqua after you get the bonus reward, so no value to hold it and no need to buy ever. In that case the aquafi premium rates must be amazingly hight, to get any value from it.
I dont know if those extra 10% are going to attract a lot of people, because eg. on uniswap we earn 0.3% fees proportional to their share of the pool, with 10% extra this will be a 0.033% reward for the liquidity provider.
As this says those 0.3% LP’s fees goes to the protocol and I guess the protocol will mint as many aqua to payout the same amount +10% in aqua.
If I get it right, this is the amount that will stay in the protocol after the people withdraw their liquidity, so how will this model work in the beginning? Because most people who add liquidity dont do this just for some days, like maybe in flashstake. So I guess there will be a BIG selloff inflation at beginning already, and hard to keep up with the fees after.
Also it will be really hard to attract people in the beginning because of the inflationary system and the small advantage. Many tokenpairs offer LP staking options where you can get up to 80% apy on the staked LP token itself and not on the fees, so much more gains.
I’m not sure what business model would be best, as I am unsure if the accumulated fees will be enought to keep the water flowing
because liquidity providing is more for long time investment and for bigger holders, maybe we could attract some more liquidity to blockzero in total, it really depends on the popularity of the protocol!
Also I still think the index fundis a great thing and you should go ahead with this first and also put some flash in it before the actual coindrop, to gibe blockzero more sustainability in total
Because I see no value in aqua itself, and I guess you need to mint a lot of aqua tokens to payout those extra rewards this will be a very inflationary coin and it will always get worse because you always have to mint more tokens
At all I’m still not sure about what to think about the coin, I hope you can convince me more in the next couple of weeks and month. I hope I get it right, pls correct me when I interpretated something wrong
one more opportunity or idea to attract people to provide liquidity
What I dont like about providing liquidity on uniswap etc is you dont see your impermanent loss, if you want you have to calculate it yourself. if the aqua app would show me also the actual impermanent loss, and better statistics over it than on uniswap, maybe it could attract some more people. I only seen this once in a portfolio app before and wish I could see everywhere I provide liquidity