Assignment | Attracting Early Liquidity to Flash v3

It could be true, but look at pancakeswap… Its pools have been running for 1 year now

I tried to compile a list with interesting Communities and Mining Programs mentioned above … obviously we’ll not be able to use all of them in the beginning but it’s worth study them and put them in order.

Olympus Pro is a protocol i’m trying to learn about for few weeks now, so i can use it for another project. I’m not yet convinced about it’s economics but definitely from your explanation is quite easy to understand the project.

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The yield farming program from Bonded.finance for sure. What’s different about it is that the rewards are not paid in $BOND tokens, but in other tokens that have a partnership with the Bonded.finance team, therefore reducing inflation of the token. These partnerships are time-based, for a limited period of time from what I know, so the LP providers will receive different tokens for different periods of time, therefore distributing their rewards over multiple tokens and ensuring that their portfolio is somewhat diversified.

Maybe the tokens added as liquidity by Flashstaking can also be used to pay out LP rewards?

I would say that Glitch protocol and Bonded.finance are interesting tokens with cool communities and a partnership with them would surely benefit us.

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Thanks for the friendly feedback. I do agree that the economics of Olympus itself are not 100% clear nor proven, but the Olympus Pro service is much simpler to understand from the customer/protocol side as mentioned above. I´m very sure it aligns investor interests perfectly with the protocol. In fact I´m about to sell half my ALCX for eth, pair it with the other half and bond the LP for the discounted ALCX. It just makes sense economically because I will have more ALCX one week later than what I started with. This will also be true for all Flash holders who receive their airdrop - they will want to sell half of it to create an LP, bond it and get more Flash after a week. :wink:

Just as an aside, the reward currency can also be different to the components of the bonded LP. For example, we could sell XIO bonds for Flash/ETH LP. However, that would imply that the investor is bullish on XIO instead of Flash. Not sure if that makes any sense in this context but it´s possible in theory and should be mentioned.

I agree with that, but layer 2 can resolve the fees issue.

Thats very controversial topic, but seeing the transactions and Dapps on Eth network, its hard to say anything.

Overall I agree with your statement of transaction fees being very high. But implementation of layer 2 should be priority if we want to stay on ethereum

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Great discussions going. Sorry for being a bit late to the party. I’ve already identified a suggestion that matches my own preferences to a large extent. Kudos go to @DeFiChad.

  1. Which liquidity mining programs (rewards programs) are most appealing to you personally? What do you like about it? I like Blockzero’s the most. Probably tune down inflation but ETH based mining with $Aqua makes a great match for BZ and $Flash.
  2. How could this be a good inspiration for Flash V3? How would you adapt it to attract Flash v3 liquidity?
    High gas fees make this rather unattractive for smaller amounts which one can see as positive since bigger pockets could commit if incentivized. Current market conditions with ETH increasing look also good for this kind of investment. Challenge would be to find the right APY levels. On the other hand we might see small pockets using $Flash which makes both sides profiting from the protocol. The launch of such a liquidity pool would probably need to be adjusted to make this attractive.
  3. Are there any specific communities you would target with this program – be it to provide additional new liquidity or to migrate existing liquidity to the Flash protocol? How do we tie rewards into a vampire attack approach to make sure we retain what we drain? Which communities would you target specifically and why would they want to use Flash V3?
    I think a good match would be pooltogether investors. They are gamblers, should like the idea of timetraveled payouts and perhaps remember Flash V1 V2 as positive. Other communities crypto punk owners because they like ETH and probably can afford long term commitment. Former Flashstakers should also make a good match.
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My biggest question, and I don’t understand most of the actual technical breakdown, is why would anyone want to stay on Ethereum. IMO, Ethereum was the first, and made to be believed it is the best, but avax is what Ethereum wants to be. Why stay

Because DeFi lives on Ethereum and startups go where the capital is. Ethereum has a huge first mover advantage because of that.

Further, DeFi lives from composability. You can build new, innovative applications only on top of existing infrastructure and ETH has by far the most versatile infrastructure with the best liquidity.

Lastly, ETH is like BTC in the sense that it´s largely proven. Look at what happened to Solana recently with the network going down for 12 hours. What a mess, really. Many other networks are way too centralized.

So I´d challenge your question with the counter: Why would any startup take the risks and infrastructure disadvantages of newer chains?

  • Which liquidity mining programs (rewards programs) are most appealing to you personally? What do you like about it?

I prefer liquidity mining programs that are not too aggressive, and where I don’t expect people to dump the tokens they receive. I want to LP on a token without worrying that whales will outdump me.

For example, the current liquidity mining program for the Bright token is going pretty well. One additional detail is that it also works on xDai, so you can compound the rewards and LP more.

I would be OK with a vesting period, with decreasing penalties. Ellipsis (Curve clone on BSC) had a vesting schedule on their LP rewards, and I believe it helped curbing the high emissions.

An NFT could be minted for addresses on timed snapshots, and some utility could be built on those NFTs. Example: governance on liquidity rewards.

  • How could this be a good inspiration for Flash V3? How would you adapt it to attract Flash v3 liquidity?

I believe a combination of vesting and limited aggressiveness on the APY could attract liquidity to the protocol. Also some certainty that the token will not be dumped. I believe it’s critical that the market sees utility alongside the liquidity mining program.

  • Are there any specific communities you would target with this program – be it to provide additional new liquidity or to migrate existing liquidity to the Flash protocol? How do we tie rewards into a vampire attack approach to make sure we retain what we drain? Which communities would you target specifically and why would they want to use Flash V3?

I would target the Lobster DAO community. It has the highest amount of OG DeFi people, that can for certain contribute a lot to the community once they see there’s a solid plan and schedule. Also, they are early adopters by nature.

Recently they performed an NFT drop for members, so there’s both an address list that can be targeted, or we could offer whitelisting with the NFT.

Geist protocol (similar to aave on fantom) is doing an airdrop to them, and it generates a lot of attention of influential members of the ecosystem. Example: banteg, andre cronje, mihailo, stani, etc.

you can argue on both sides, but in my opinion Ethereum is having most projects, developers and assets. Besides there were many projects who were thought to be Ethereum killer but slowly most of them faded away. Gas fees can be resolved with layer 2.
But I do believe Avalanche is something to keep an eye on.
For Blockzero, there has been discussion for this exact topic, and I believe we are waiting for eth 2.0

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one important reason is that exponential growth comes from taking higher risks…
i think it needs to be an equilibrium between ETH vs Others . The only way we can grow is to have lots of people use and being involved in the BZ projects.
The money will follow the people and if “deep pockets” will see that is an immense interest around BZ, they’ll be interested to bring their money along. To do that we need people with “small pockets” to use the platforms and apps created by BZ… but how can we do that if the gas fees of ETH are 15, 20 in some cases even 50% of what someone is willing to LP, Stake etc…

It’s been already a topic of interest for the BZ community, we discussed it before and i think we’ll see some results soon

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I agree, I saw that few other citizens or Zach were talking about having citizen passport as NFT.

I agree with the statement but, don’t see the point.

I think it’s about targeted marketing.

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Agreed, both sides are arguable. My biggest question is why wait? Avax is killing Ethereum in all aspects except adoption. The only way to overcome that is to adopt. I sent avax from my trust wallet to network and almost by the time I looked at my computer screen it was completed for less than .5 USD. That same tx on Ethereum could have taken hours and cost $50 +. Yes, layer 2 may provide better fees and faster tx, but less than .2 seconds and less than .5? Doubtful. Build early and help with adoption.

i was referring to some of the V1 and V2 users who are not in a very good spirit after two attempts of FlashStake taking off. Spending a lot of time around discord i saw a lot of people unhappy with the project and i think is important to be included in any future marketing strategy. At the end of the day i assume we would want these people to stick around and not sell their V3 as soon as it’s possible.

Sorry, didn’t know that people were having problems with v2. For me the only hurdle is the gas fees. Like many other said most of the time gas fees are higher than the amount you want to stake.

  1. Which liquidity mining programs (rewards programs) are most appealing to you personally? What do you like about it?

I don’t do yield farming yet, but I did check out the way we do it through the Liquid Fire mission and it sounds interesting.

  1. How could this be a good inspiration for Flash V3? How would you adapt it to attract Flash v3 liquidity?

XIO has plenty of liquidity so I think a similar approach could work on Flash, but I wonder if the inflation won’t be too high, because if the Flashstaking feature brings inflation and the rewards program also brings inflation then it might be too much

  1. Are there any specific communities you would target with this program – be it to provide additional new liquidity or to migrate existing liquidity to the Flash protocol?
    How do we tie rewards into a vampire attack approach to make sure we retain what we drain? Which communities would you target specifically and why would they want to use Flash V3?

I don’t know any specific communities but I’m thinking that we should focus on communities with tokens that have a small marketcap, maybe under 50 million, because mayybe they have this same problem and they already figured it out.

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  1. Which liquidity mining programs (rewards programs) are most appealing to you personally? What do you like about it?
  • I like this kind of liquidity as a reward for providing a token liquidity over time - the longer you provide, the more you get. liquidity with levels
  1. How could this be a good inspiration for Flash V3? How would you adapt it to attract Flash v3 liquidity?
  • the best adaptation, in my opinion, is the distribution of tokens with a liquidity provision program. namely, all who received the distribution must provide liquidity in order to receive the remuneration for providing liquidity. if a person does not provide liquidity, then his tokens can be sold not earlier than a certain period.
  1. Are there any specific communities you would target with this program – be it to provide additional new liquidity or to migrate existing liquidity to the Flash protocol? How do we tie rewards into a vampire attack approach to make sure we retain what we drain? Which communities would you target specifically and why would they want to use Flash V3?
  • it is possible with the UMA protocol