FlashStaking offers startups access to capital. When FlashStaking is done, XIO is brought into circulation (Foundation Wallet), swapped for the alt coin which instantly moves to the stakers wallet. The startup receives the XIO (or corresponding ETH depending on which liquidity pool they use). This is great.
A problem arises if the startup has little liquidity to begin with. If demand is high slippage will lead to high volatility on the pair making it difficult to scale.
Here is what is proposed:
Instead of ‘just’ offering startups capital (which yes, could be turned into liquidity), XIO can install an automated service offering startups a way to establish a growing, well distributed pool of liquidity (white labeled liquidity program). XLP has been a really successful concept. Why not transform it into a service for startups?
Instead of having one staking option,
- receiving startup’s tokens,
we can offer a second option:
- receiving UNI-V2 tokens of the startups liquidity pool.
This way the startup can distribute and grow their liquidity pool nicely. Before launch the startup sets aside an amount of their tokens as liquidity incentives for all participants of the staking pool to earn from. Just as with the XLP.
If we now find a solution to balance impermanent loss, that could be a really neat tool to offer.