🚀 Behind the Scenes of XIO Development #1 | Using Private Portals for Liquidity

NO CREDITS ON THIS ONE - just for the discourse … :rocket:

See @ZacharyDash talk about what’s going on behind the scenes

Do you like these kind of informal “Behind the Scenes …” videos?

  • Yes, I definitely like more of these
  • Not sure, I really don’t care.
  • No, please make it more simple. Just tell us how it’s going to be!

0 voters

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Wow, that’s another simple but ingenious approach. Blows my mind right now, really, since I know some projects dealing with Liquidity on Uniswap.
This is a combination of rewarding liquidity providers and at the same time locking liquidity. Another possibility of huge advantages for both sides.

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I sound like a fanboy here. Seems like I am. :rofl:

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I do very much appreciate any insight you give into ongoing behind the scenes discussions.

When talking about #FlashStakingLiquidity by locking up UNI-V2 tokens into the XIO app for upfront rewards I wonder what the process of early unstaking would result in?

Will this eventually lead to the burning of Liquidity tokens? What a wicked thing that would be for the startup :rocket: :rocket: :rocket:

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I think anything that increases exposure to the network is a good thing. If “Flash Liquidity” is a mechanism for that, then so be it. As you said, the Treasury would syphon off a percentage, which would only increase value to the XIO Network. It also then gets more eyes on the other available portals for people to play around with. All in all, I’d say it’s a good thing, particularly for projects looking to build liquidity, and could be a natural transition mechanism for young startups that need raise capital initially, but then build liquidity as they mature.

I think that the option for startups that already have the funding to use the XIO protocol in a different way is great, as it will help the startups that have liquidity already and solidify XIO as on of the difference makers in the space.
Here’s to being multi-faceted!

Just like Ben made with XBOMB stake the uni to earn XBOMB in future… FLASH LIQUIDITY gives you the rewards instantly…

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Here’s my thought on this, which I shared on Telegram.

Clearly XIO have wrestled with this XLP program already and they have firsthand experience with how tough it can be to decide how to go about it, how best to incentivize liquidity providers, how administer the policies, etc. They’ve been through several rewards policies, they’ve gone from having Citizens fill out forms to trying to track it via the transactions, they’ve put up xio.to and added some cool widgets to it. It’s a whole thing and they’re not done trying to figure out how best to automate/administer it.

So maybe as XIO polish up solutions to THEIR liquidity program…they can scale up those solutions and offer them to other startups, who could essentially outsource their liquidity enticement programs to XIO via the Private Portals and XIO Labs. This would be among the services they could offer startups in their incubator efforts.

Being able to plug Uniswap LP tokens into the dapp and flash instant liquidity rewards to the LP would seriously, seriously juice up the incentives for new potential liquidity providers to come in and provide liquidity on Uniswap. That kind of instant gratification would have an effect. And since the Uniswap LP tokens would be locked up in a smart contract, it ensures that the liquidity would stay for a length of time.

I could even envision XIO being able to figure out a Zapper.fi-like interface where the XIO dapp user could simply offer up ETH and then XIO would engage in a series of transactions converting that ETH into the correct combination of ETH and ALT-coin, plugging it into the Uniswap ALT-ETH Liquidity Pool, collecting the Uniswap LP tokens, and then issuing the dapp user some XIOu tokens (which they could use to reclaim their Uniswap LP tokens) as well as a fistful of ALT coin tokens as part of the liquidity provider incentives program.

Just think about the XLP program for XIO. The policy is a 10% base rate on your initial staked XIO tokens in the XIO-ETH pool for every full month you complete, with a multiplier for consecutive months strung together without removing liquidity. Using the fancy tools on XIO.to I can see that over the next 12 months I’m projected to receive about 120% rewards under the terms of the XLP program.

So imagine I go to the XIO dapp and I offer up 1000 XIO and 1.43 ETH on a 1 year stake. Immediately, I’m issued 1200 XIO tokens, plus an XIOu with a claim on the Uniswap liquidity pool. You walked in with 1000 XIO tokens and you walked out with 1200.

There’s no shortage of stuff you could do in the background to make this economically attractive for XIO to play this role. XIO could keep some of the ALT’s liquidity rewards in its own Treasury. It could even extract the trading fees earned from the Uniswap pool over the period.

Either way the flash concept applied to the liquidity pools fits perfect with the flash staking theme of the XIO token, AS WELL AS the startup incubator theme. You could see several startup coins looking to reinvigorate their liquidity pools by signing on with XIO to do flash rewards.

4 Likes

The idea is interesting of sure. It seems to me that this path for private portals is much more scalable solution to launch with and it also helps identify the start ups to recruit to the protocol. So from a business/sales standpoint this offers an instant value proposition for all parties involved.

Also, from a marketing standpoint by attracting establish projects with funding will help the exposure of XIO, consequently bringing indirect XLP citizens and hodlers alike.

wow, it seems a very good solution for a permissionless yield farming.
can the vested interest payment be implemented into this? or we are always taking upfront payments?
and what is gonna happen if i added liquidity locking my Unitokens for 120 days and I want to unstake early?

1 Like

I hope I am not totally misunderstanding you, but burning of liquidity tokens? That should be a no-no.

I see the staking like a contract between two parties. One party is the capital/liquidity provider, the other side is the startup. Early unstacking is a break of the contract, so the breaking party should be penalized, not the party who honored the contract. Therefore, IMHO, any penalty for early unstaking should be applied to the staked coins, not the rewarded coins.

User stakes 10,000 coinAs
User is rewarded 1,000 coinBs upfront (coinA and coinB could be the same coin)
User unstakes early. Now the penalty should occur on coinA, user should get less coinAs than he staked. Depending on when he unstaked, let’s say user gets back only 8,000 coinAs.

It could also be a good idea to share the penalty 2,000 coinAs among the startup and XIO treasury.

I know there are plans to do upfront rewards and end-of-stake rewards. It certainly is a good idea to implement vested interest/reward. For example, stake coins for an indefinite time, get a reward monthly, unstake any time you like and stop getting rewards.

1 Like

The idea I’m referring to has been discussed on Telegram first then posted here:

So if there is XIOu tokens that entitle to withdrawing UNI-V2 liquidity tokens from a stake I was wondering what would happen if we’d apply the same logic of early withdrawal we implement currently in the dapp to this. It leads to the burning of a part (how big a part is to be decided) of the staked token in our case XIO in the case discussed here UNI-V2 liquidity tokens.
You have to not mistake this for the burning of liquidity. Actually quite the opposite would happen. Burning the token that would allow the removal of liquidity to redeem the underlying assets thus preserving this amount of liquidity forever ∞
The startup does not loose anything but rather gets an eternal guarantee.
That I think would in fact be … just awesome.

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Yes, I love this idea! There’s been a few projects popping up lately skirting this, but as far as I know they’re all focused on locking up the initial liquidity provided by the project founders, not incentivizing investors to do the same. Having proof of locked liquidity is such a boon for both startups themselves and prospective investors, I’m sure the market for this idea is just ginormous.

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One thing I look for when researching a startup is how liquidity is distributed. Even if a project has decent liquidity it often is held by only few accounts. If liquidity is widely distributed as is the case with XIO I am much more confident.

Burning the token that would allow the removal of liquidity to redeem the underlying assets thus preserving this amount of liquidity forever ∞

Aha! Now I understand you. That really does sound awesome but I am having difficulty imagining how that could be implemented. I guess I should spare more time to think it through.

This is interesting. My first thought is maybe the UNI-V2 tokens shouldn’t be burned at all, but rather confiscated for the XIO Treasury/Reserve.

Would serve a similar function as your suggestion of forever burning the redemption coupon and ensuring the liquidity stays there forever, except it gives the XIO governance optionality to choose to redeem those liquidity tokens if it’s the right thing to do. Plus it bulks up the Treasury/Reserve. That to me is the biggest win.

Thank you for posting this. I really appreciate it as all the videos and the discussion around them helps me learn how to look at things differently and motivates me to explore all possibilities. Keep 'em coming :slight_smile:

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Would be a very nice incentive indeed to time lock your liquidity for longer period of time and flash stake your way out of there with significant capital to reinvest. Killing feature for many projects. Great way to lower the liquidity volatility! Higher risk = Higher reward -

First of all thank you for bringing attention to this channel! I really like the format and would definitely watch more! Now on to the good stuff:

I have mixed feelings about this, as some have already expressed in the posts. On hand, it is as you said a very nice pitch to the startups. They could basically start building their “guaranteed” liquidity.

On the other hand, we mustn’t forget that we are permanently locking up capital. And I am not sure that I would like to have completely immovable capital.

How about we combine these ideas and come up with the following:

1)When using flashstaking you have 2 options, to stake your UNI-V2 tokens or other “regular” tokens. Depending on which you use, the burn would function differently.

2)If you use regular tokens, it would be a burn as discussed, but if you use UNI-V2 instead of burn you will have confiscation (cant think of marketing friendly name). So instead of burning tokens, they will go somewhere else.

3)Where do they go? To a separate Treasury, another one dedicated solely for various UNI-V2 tokens.

  1. To “access” this Treasury, you cant just burn your XIO to get these tokens, but use of these tokens will be decided by the community. XIO voting basically.

Rewards: In my mind, this will provide a similar benefit as the burn does but will also give more value to the XIO token and community as it would enhance the governance aspect and would retain the liquidity tokens in case something happens to Uniswap and the liquidity needs to be migrated.

What do you think, am I missing or distorting something?

2 Likes