Adding PANTS<>PRTCLE to Liquidity Provider Rewards

[youngkidwarrior]

---

SHEiP:
title: Informational: Adding PANTS<>PRTCLE to Liquidity Provider Rewards
author: Victor Ginelli (@youngkidwarrior)
discussions-to: N/A
status: Idea
category: Informational
type: Operations
created: 2021-07-28
edited: N/A
requires: N/A
replaces: N/A

Simple Summary

Reward PRTCLE<>PANTS LP providers get rewarded in PRTCLE LP farms

Abstract

The goal is to make PRTCLE the default liquidity pool for PANTS. Incentivizing PANTS liquidity will boost both PRTCLE and PANTS liquidity pools and encourage more movement in PRTCLE trades. I propose adding this PRTCLE<>PANTS into calculations for weekly LP rewards.
Each pool in the LP rewards is weighted based on it's total USD value, so there is no worry of over-rewarding stakers for holding large percentages of the pool.

Motivation

With PANTS relaunch, we want to incentivize adding PANTS liquidity. When Uniswap launched UNI, it announced an airdrop of UNI to all SOCKS holders, which led to a massive boost in SOCKS price. We can further incentivize liquidity by adding this pair to our LP rewards, which haven't launched yet.

Specification

Adding a pair to the LP script is trivial, since we are already using multiple pools. The current pools are HNY<>PRTCLE, XDAI<>PRTCLE, and HAUS<>PRTCLE. Adding PANTS is as trivial as adding pair address.

Rationale

Since the app has yet to launch, PRTCLE has little trading utility. Using PANTS to boost its tradability would be mutually beneficial.

The other pool considered for rewards was PANTS<>XDAI. This was considered for two reasons:

1. It is a more stable position. Price is less likely to fluctuate and increases in PANTS price will not affect holdings of either token.
2. XDAI is far more liquid, giving it a better trading value with PANTS

The reason I chose not to go with PRTCLE<>XDAI is that PRTCLE is severely lacking trade volume. This would help that cause. Even though the pool is riskier, many people have PRTCLE sitting doing nothing. The majority of PANTS holders are community members. We could encourage them to stake there sitting PRTCLE with PANTS.

Implementation

Rewards can start calculating from the day this proposal passes

Copyright

Copyright and related rights waived via CC0.

[cheo0202]

the rewards for the contribution of liquidity in the pairs PRTCLE / pants. would they generate a profit?

[cheo0202]

I think it would boost the price of PRTCLE since pants is a scarce currency and when they start to claim the price will go up a lot

[Jega71]

PANTS <> XDAI would be the ideal, we are still in an initial and somewhat immature stage, facing two internal tokens could generate even more volatility that will not be attractive for new participants. I prefer something more stable with a more organic growth.

[youngkidwarrior]

@Jega71 Yes stability is crucial. You have a good point here.

I think in terms of rewards, we might want to be rewarding the riskier positions. I'm curious to hear what others have to say

[Musashi13]

volatile token paired with stablecoin = guaranteed volatility. I'd rather take my chances that their volatility generally following the eth market, in which case having pants/prtcle would be the pool with less IL. that's my vote.

[YalorMewn]

I'm not an educated man, but if choosing PANTS <> PRTCLE pair increases the trading volume of PRTCLE I'm in support of that pair.

I'm already providing liquidity for PANTS <> xDai but I'm happy to switch to the option that best serves the community.

[kittyslasher]

Lets do both liquidity pools, and offer different rewards based on which pair liquidity is being provided to. Have a higher reward for PRTCLE <> PANTS than for xDai <> PANTS but reward both liquidity providers.

[chair28980]

This is very necessary.

I also support additional rewards to Prtcle based pewls.

[youngkidwarrior]

@kittyslasher that's not a bad idea.

[cheo0202]

I would bet on the two pools pants / xdai pants / prtcle I think the two currencies would benefit. i believe in she

[kittyslasher]

I say the following pairs should be
PRTCLE <> PANTS
WxDai <> PANTS
HNY <> PANTS

If they are down
AGVE <> PANTS
PANTS <> ALVIN

[Musashi13]

I say the following pairs should be
PRTCLE <> PANTS
WxDai <> PANTS
HNY <> PANTS

If they are down
AGVE <> PANTS
PANTS <> ALVIN

I'm down with all but

HNY <> PANTS

[chair28980]

I vote no more pairs with HNY.

[kittyslasher]

What's your reasoning behind this? We detaching from 1hive?

…

On Sun, Sep 26, 2021, 12:19 PM chair ***@***.***> wrote: I vote no more pairs with HNY. — You are receiving this because you were mentioned. Reply to this email directly, view it on GitHub <#5 (comment)>, or unsubscribe <https://github.com/notifications/unsubscribe-auth/AS3GIMCWSGWJKTMS33M2BTDUD5W4XANCNFSM5BFMY56A> . Triage notifications on the go with GitHub Mobile for iOS <https://apps.apple.com/app/apple-store/id1477376905?ct=notification-email&mt=8&pt=524675> or Android <https://play.google.com/store/apps/details?id=com.github.android&referrer=utm_campaign%3Dnotification-email%26utm_medium%3Demail%26utm_source%3Dgithub>.

[chair28980]

@kittyslasher I personally don't see the value in partnering and bolstering the 1hive / hny community.

[llealg2]

Hello, vote for creating the pair pants / prtcle