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.