XLP Halvening Completed! We Need Your Feedback to Make it Better #XIOfeedback

Absolutely massive milestone today for the Blockzero Labs projects and $XIO holders: the first of four XLP Halvenings is in the books!

Moving forward, the amount of new tokens coming into circulation will be cut in half :eyes:

Roughly 16 months ago, we started the XIO Liquidity Program to give Blockzero Citizens the ability to earn 10-30% per month

To date, these LPs have earned over $1.9M

As we move forward into the next wave of the XLP and automating the program, we are asking for your help.

  1. What new token should we add to the XLP? (Currently only ETH)

  2. In what ways can we improve upon the XLP? This can be anything from yield rates and incentive structure go lowering the 1 ETH threshold!

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I am not sure that adding new tokens is necessary. But if we do I think it would be a good idea to pick some tokens that partner with us or our own tokens.
XIO/Flash on flash dapp
XIO/AQUA once aqua is out on uniswap.
maybe XIO/UMA if they want it and give us some benefits for it?
I don’t want a stablecoin to be instead of eth but it could another option.
One thing I am not sure about is what the effect of having so many pairs is going to be. We know this might cause split liquidity.

In what ways can we improve upon the XLP? This can be anything from yield rates and incentive structure go lowering the 1 ETH threshold!

If we move to balancer we could utilize the fact that balancer gives out bal as a reward (if we get approved) and so the bal + the halved xio reward might keep the reward as high as it has been for the current LPs.
Also, balancer is working on a new version that lowers fees (I think they pay back bal for spent gas) and on something that lowers impermanent loss. Don’t quote me on this I am not 100% sure.

We definitely need to lower the 1 eth threshold.

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Wow that is fantastic for BZ and XIO. If I’m not mistaken the millstone was reached a month early on the projections! Outstanding.

Can’t wait to see how it effects the price of XIO.

Im not sure we need another pool, I don’t want us to spread ourselves too thin. Although DAI would get my vote if it was going to happen.

Im not sure the XLP can be improved, it’s really great and has gotten alot of referrals of my friends from me into the community. Introducing friends to crytpo and a solid community is the best way to get long term followers which is exactly what BZ has and the XLP rewards that investment.

I’m not sure what token would be appropriate to add to the XLP but would love to see a lower threshold as opposed to the 1 ETH. Would lower the barrier for a lot of people. Obviously the gas fees were a big issue when providing liquidity too.

I agree with the user above that tokens from the XIO ecosystem might be the best consideration. There are holders of FLASH who aren’t even aware of Block Zero Labs. This would tie the many projects together and would also serve to spread awareness.

  1. I think adding a stable coin pair would be beneficial. Volume on the eth side isn’t high enough to justify so much liquidity, so we can afford to split it. Having multiple pools creates arbitrage opportunities, thus increasing volume and helping both pools. Would definitely not replace the eth pool, just allow liquidity in a stable coin to count towards rewards as well.

More importantly, I think offering partners to take part in the liquidity pool was a great idea informally proposed last week. Fleshing this idea out, and maybe starting with UMA, would be great.

  1. Definitely getting rid of the 1 ETH threshold. Ideally, all of this would run in a smart contract, which in turn would be part of the suite of products XIO can offer startups in the future. Of the two options that Zach and Steve were talking about last week on youtube, I think having a system where you got daily or weekly rewards automatically would be best. You would then have the smart contract keep track of your multiplier as it increases over time, but you are free to remove your liquidity whenever you wanted (thus resetting the multiplier)

I think xio is perfect as is and I think everyone knows where they stand. I don’t think changes are needed. I do believe that for aqua a great idea as mentioned above would be to try a different defi exchange as well as uniswap. And I think some kind of sliding reward to encourage liquidity on balancer for the first three months. ie 1.3:1 for the first month 1.2:1 for the second month then 1.1:1 for the third then leave it to the market to decide. And you may also be able to do a deal with balancer over this preferential treatment for the launch of the token.

Personally have no preference for another token added to the XLP. Having it automated in a smart contract I support, other liquidity mining protocols show rewards accumulating in real time which is extremely satisfying and with the increase of the price of ETH I am in favour of removing the 1 ETH minimum.

The XLP is a wonderful program especially for persons who have been in it for a long time and those persons have reap the rewards for there dedication to providing liquidity over the past months with that said;

What new token should we add to the XLP? (Currently only ETH)
I personally believe it should remain this way the ratios may change over time but like what you always say “let the market decide” and for persons who% have been in it for a long time they might feel a lil less. If it is that we add another token let the which pair with eth have the greater rewards.

In what ways can we improve upon the XLP? This can be anything from yield rates and incentive structure go lowering the 1 ETH threshold
We could improve by restructuring the multipliers eg. monmths 3-6 =1.2% ,months 6-12 = 1.5, months 12plus =3, months 24plus=4
if we lower the entry point in the xlp persons who were there from the previous entry should gain at least a quarter more returns than those who enter at the lower rate.

This is my take.

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  1. XIO/FLASH pool! For those that we are bullish in blockzero labs ecosystem overall would be awesome to have this pair to give liquidity!

  2. I wouldn’t touch the yield rates at all, I think that it has been working good so far and that it will continue to work better now with the halvening and the projects coming out (the price should start to go up in a bigger way!). Lowering the entry barrier to 0.1 ETH would be good though. Also, I would love to have liquidity pools in Bancor Network, is a great place for providing liquidity on long term holdings without having imperment loss…and I think it will give XIO token a special boost in popularity also.

Here are my thoughts:

Lower the 1 Eth requirement - it poses a barrier to entry for some; also, what is the downside of someone submitting .25 ETH for an equivalent of XIO to the pool?

The reward halvening makes sense - stick to the plan. I am a recent citizen, so I would have LOVED to have 18 months of the old reward system, but the LP rewards are still very generous.

I am opposed to the use of a stable coin, but can see compelling reasons to have a stable coin pair to increase liquidity of XIO. My opposition is based upon my overall dislike of fiat and I equate the stables to their fiat counterparts. From a purely liquidity/business/transactions perspective the use of stable coins make sense; I just have my philosophical reasons to be opposed.

I support the inclusion of Flash and Aqua as part of the liquidity pairs - I mean… this is a studio and a platform to provide liquidity to the new tokens in the family. I think it makes sense to have them as part of the LP program.

Uniswap is the place to be and it is great that we are there. If the community does not receive special benefits to only being on Uniswap, I support having pooling on another DEX. I have used Balancer and Iinch in the past, but I have no idea if additional DEX’s would create a challenge for Blockzero Labs.

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I think the answer to this question can be quite tricky. On one hand we don’t want to dilute the main LP for XIO which is ETH/XIO. On the other, a broader XLP can attract more attention and interest from people.

I would for sure broaden it into the own BZ tokens, as I will think it could strengthen the ecosystem. So that would be XIO/FLASH in both Uniswap and the Flashstake Dapp, and future XIO/AQUA. I would not include non-BZ tokens with the exception, maybe, of a stablecoin (like DAI).

What I would do is to apply a multiplier depending on the interests of BZ. Of course, crunching these numbers could be quite difficult at this stage but this could help promote whatever is best for the projects and ecosystem, and it could even change over time.

So, for instance, XIO/ETH could be base 1x, but when AQUA is released this could go with a 1.5x. Or maybe XIO/FLASH is more interesting in the dapp than in Uniswap so in Uniswap is 0.75x and in the dapp is 1x.

Oh boy, I am both sad and happy for this milestone. I won’t see those juicy xlp monthly rewards anymore, but the value of future rewards should go higher since we will have less inflation. A good milestone.

As for the question, I think we should move our xlp program to sushiswap only if we will be able to liquidity - mine sushi tokens as well. That would be nice, on top of the already nice xlp rewards.

The xio/eth pair is good for now, and a xio / stable coin (not tether please) should be only an addition and not a replacement for the current xlp.

Lastly, please consider adding the xlp porgram on the binance smart chain, for the lower fees. I am sick of paying 60$ eth fees every time I claim or stake or move xio or add liqudity :sob:

if we split the liquidity into more pairs there will be 1 problem: slippage (spread) when you place big orders. in this moment there’s a 0,29% price impact if you buy 10.000$ of xio. this increases to almost 3% with a 100k order. this is nice because it allows big money to come in.

if liquidity is splitted among let’s say 3 pools, every pools will have more or less 1M liquidity. this means that a 100k buy has a 8,5% price impact. that’s a problem for the people that manage more money than the average because they are losing instantly money because of the extreme spread.

i’m really against splitting liquidity…

about the second question: don’t lower the rewards. they are already being lowered. and remember: not many people in crypto world maintain a position for 1 year (to get the max multiplier)… 5/15 is ok.

another thing: if you think about it, it’s not 5/15%… is half… the total capital you are committing is the double (for example if you put 1000 xio you have to put the same amount in dollars of ethereum). but the 5% is on top of xio only, not the entire capital. so the real interest is 2,5-7,5 %. which is low for a micro cap crypto project.

i’ve been (and i am) inside many staking and farming projects. for example zero was given more than 500% annually (which is 41% monthly) interest on zero/usdc pair. LPOOL is giving in this exact moment 515% annually on LPOOL/ETH pair. and the 515% is on the entire capital (LPOOL + ETH) so if we compare to xio, it is like 1030% annually.

these last 2 projects aren’t p&d or any kind of money grab. they are legit project (zero is a multichain dex and lpool is an ido launchpad platform).

i’m saying that because i want people to understand that the rewards xio is giving are just “normal” for a micro cap crypto company. nothing special.

i think it is good like it is now. we have 2 more halvenings so the long term is already guarantee.

I Will start with the question of improvement of XLP.
Reducing the minimum amount from 1eth to 0,5eth could really encourage a good number of people to add liquidity. Some of my friend told me that XLP is just for rich people just because of this minimum amount for the first adding.

We should also not neglect this problem of fees. It really reduce the number of people in this XLP program. But if we migrate or add XLP program to binance chain, people could leave Eth network.

And finally, by responding to the first question which is also consider as a improvement of XLP program, we could rewad this pairs: XIO/DAI (in UNISWAP) and XIO/FLASH (in UNISWAP and in the DAPP)

XLP MATH TWEAKS?

Adding another multiplier of 4x for 24 months is an exciting prospect to me. This would further incentive long term holders, giving everyone a higher goal to reach and from a psychological stand point would make it that much more painful to remove liquidity, losing a 2 year clock reset. The goal is to maintain existing liquidity as much as it is to find new liquidity providers. Kind of like the rule that it is 6x more expensive to win a new customer than to keep an existing one.

OTHER AMMs/DEXes?

According to https://defipulse.com/ , as of right now the Total Value Locked at these top 5 are:
• SushiSwap: 4.9bil
• Uniswap: 4.3bil
• Curve: 4.3bil
• Balancer: 1.8bil
• Bancor: 1.7bil

I like the idea of seeing XIO get on Bancor to be able to:

  1. Only have to deposit XIO (1 sided liquidity provider)
  2. Utilize their Impermanent Loss Staking Insurance protection to guarantee no losses (that matures after around 120 days if I remember correctly)
  3. Earn additional APY% on the staked tokens
  4. This allows our XIO tokens to be part of liquidity and doesn’t require a 2nd token to be able to do so. The benefit to anyone who is a “XIO maximalist” would be: You could hold just XIO tokens, sell your ETH half (from ETH/XIO pool) for just XIO, and now you have 2x the XIO tokens and [I ASSUME] could potentially still earn the 4x multiplier on future token earnings = a way to earn 2x the maximum potential future tokens in the BZ ecosystem vs XIO/ETH UniV2, with the same value. (100 XIO in Bancor vs 50 XIO + equivalent ETH in Uniswap, both earning liquidity provider 4x multiplier on future tokens earned vs just holding them)
  5. It appears that depositing tokens on Bancor is a one way event, meaning you don’t get a receipt token (like Univ2 tokens you do for liquidity on Uniswap) that we could use that receipt token for staking into an XLP contract. However we would still be able to centrally track bancor add/remove liquidity events… not sure if this causes Bancor to not be possible with future XLP smart contract or not.
  6. Note: from some initial research it looks like Bancor requires a price oracle to be created before you can create a liquidity pool in their system. Deploying Liquidity Pools - Bancor Network

I like the idea of seeing XIO get on Balancer to be able to:

  1. Put a really high LP fee on that pool, which can be up to 10% per balancer’s maximum allowed value when creating a pool. Uniswap only pays 0.3% fees.
  2. I would want to see us create a way for existing Uniswap XIO/ETH XLP providers to migrate to this Balancer XIO/USDC pool without losing their multiplier.

SMART CONTRACT?

I definitely want to see us move to making the XLP a smart contract based system as soon as we are able to. This has so many pros and practically no cons.

I am hoping to see some more discussion about this in particular of other possible nuances or math tricks or tokenomics the XLP smart contract could have to possibly improve it. Although it’s possible that replicating the existing XLP structure might be a great answer as is, we know it works!

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Hi,

Q1:
I would like to see all of the Blockzero Labs projects in XLP program, i.e XIO/FLASH, XIO/AUQA etc.
On putting stable coin pair into XLP, I would not pair my XIOs with dollars because of imperment loss risk is too much for me. And also by pairing XIO with stable coin we won’t able dodge bear market downturns.
To sum up IMO we don’t need to put stable coin into XLP mix, but we should add all of the BZ project tokens.

Q2:

  • We should decrease minimum entery to 0.5 ETH at least.
  • To improve XLP and decrease the emission, I think we may consider to lower the rewards for new comers but increase rewards for the long time holders.
  • XLP program in its self is very good.

XID-DEC2C

I post this chart in another thread, but I think there’s too much liquidity for the volume.

Holders of XIO are incentivized to HODL (to acquire claims of future Blockzero projects), or are rewarded even further for providing liquidity, neither of which address volume.

  1. All this to really say that I think splitting the liquidity is completely sustainable. Echoing many previous comments, pairing with other Blockzero tokens (FLASH, AQUA, etc) should be acceptable, and honestly, I’d like to see a stable coin thrown in the mix too (USDC/DAI) for those that would like to go that route.

  2. Lowering the threshold makes a lot of sense. Instead of pegging it to ETH, perhaps peg it to XIO. So the threshold could be 1000XIO, then it doesn’t matter what it’s paired with. Additionally, I think opening liquidity incentives on other protocols like Balancer is again very sustainable for the volume. Currently, 2% depth on UniSwap is ~$70,000, which is high for the market cap. Splitting that in half is still sustainable, if half went to other protocols / other token pairs.

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  1. Like others have said I believe some sort of stable coin would help out and could motivate people to become liquidity providers.

  2. Since ETH is at a high USD price I think lowering it to .5 ETH or .75 ETH and the equivalent to any stable coins would motivate for more liquidity. Like maybe do an average ETH price for the past month to set the bar. The reason why I joined the liquidity program is for the 25x multiplier for AQUA tokens. Had I been paying more attention I would have done this awhile ago especially considering how well FLASH is doing. And the bonus XIO doesn’t hurt. Lowering the threshold would help out people that don’t have 1 ETH plus the equivalent XIO tokens as that adds up to almost 4000 USD, which many people don’t have lying around in crypto money. Also considering the gas prices it’s good that it is not something you have to stake on a monthly basis. That would harm the program, it doesn’t look like anyone wants to do that.

Maybe a lottery of some sort like a random person or a few random people get 100 XIO or 50 XIO bonus or AQUA etc. or upcoming tokens. I saw on Telegram someone was saying what if we just hold AQUA can we get a bonus on future tokens. I like the idea although I can see why Zachary was questioning it as in what would holding AQUA do to securing the platform. I can see it both ways. Holding AQUA as well as XIO or FLASH to secure a bonus would prevent dumping temporarily but could promote dumping as soon as a bonus is activated. As in, on the release of future tokens. Maybe something like an AQUA liquidity program or FLASH. Yes there is already the UniSwap Pool though.

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XLP SMART CONTRACT IDEAS:

• What if when you remove staked liquidity from the XLP Smart Contract, if the total time it has been staked is less than 12 months, there is a 5% exit fee that 5% of your stake is sent to the XIO Foundation, or the XIO Index Fund, or is burned (creating permanent liquidity) instead? Or maybe this % fee could be proportional to time staked such as (5% x [Total Months Staked]/12) such as 9 months staked out of 12 means exit fee is only 1/4th the fee cost sine 3/4ths of the time has matured so far of the 12 month criteria to pay a exit fee.

• What if it allows multiple stakes like Flashstake dapp does, so each liquidity stake can be managed independently? Allowing Unstaking of individual stakes instead of the current all or nothing approach?

• What if we had 2 different staking choices? Locked and Flexible. Locked: you can not unstake for at least 12 months but get an additional % bonus to your APY (such as +20% more). Flexible: you can unstake at any time but maybe if you unstake in less than 30 days you pay a penalty fee (such as a 5% fee)?

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Here are my thoughts on the subject:

What new token should we add to the XLP? (Currently only ETH)

  • It would be definitely worthy to include a stablecoin(DAI ?) into the XLP so that takes care of the impermanent loss to some extent in a bear market.

In what ways can we improve upon the XLP? This can be anything from yield rates and incentive structure go lowering the 1 ETH threshold!

  • XIO pairs from XLP should be made available for Aqua awards when it launches.
  • 1 ETH threshold should be lowered to probably be based on XIO (2k XIO)?
  • XLP rewards can be given more systematically instead of a monthly payout…if XIO can be given every day in the claims dapp, it would reduce the sudden selling pressure all at once.
  • I wont change the yield rates as I love the nature and design of the current XLP.
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