Proposal to Improve Liquidity and Value of MIN Token in Minswap

Proposals
1

Currently, in Minswap, all Liquidity Providers (LPs) receive ADA staking if the pool has farming. However, I propose a change in this reward structure to enhance the liquidity and value of the MIN token.

Proposal:

I propose that the ADA/MIN Pool be the only one to receive Cardano staking. This change aims to increase the liquidity of this pool and encourage MIN holders to deposit their funds in the ADA/MIN Pool.

Benefits:

  1. Increased Liquidity: By making the ADA/MIN Pool the only one to receive Cardano staking, we incentivize MIN holders to deposit their funds in this pool, thereby increasing its liquidity and this reduce the Price Impact.
  2. Increased Value of MIN: With more liquidity in the ADA/MIN Pool, the value of MIN is likely to increase. This, in turn, would increase the APY of the farms, as it depends on the value of MIN.
  3. Attraction of New Investors: A higher MIN value and higher APY can attract new investors, bringing even more liquidity to the system.
  4. Increased APY: As the price of MIN increases, so does the APY, benefiting all MIN holders.
  5. Motivation to Accumulate MIN: With a higher MIN value and higher APY, MIN holders would have more reasons to accumulate this asset.

In summary, this proposal could result in increased liquidity, a higher MIN value, the attraction of new investors, an increase in APY, and more incentives for MIN holders to accumulate this asset. I believe these changes could benefit all participants in the Minswap ecosystem.

Please consider this proposal for implementation. Thank you for your time and consideration.

  • YES - Staking ONLY Pool ADA/MIN
  • NO
0 voters
1 Like
2

We need less liquidity rn. We have liquidity similar to that of Uniswap level price impact, but we aren’t as big. LP needs to be reduced and staking needs to be further incentivized.

$1000 bought 4000 ada a month ago

Now it buys 1,666 ada. The price impact for the same $ amount has lower price impact than before because min/ada pool is the largest on cardano. The lp needs to be adjusted at regular intervals (probably by hiring a 3rd party service) so that price impact remains the same for the same $ amount regardless of ada price.

Otherwise we can have the best tokwn on earth but even $100k would only have a minimal price impact.

Bottom line is that more liquidity for min/ada is not the way.

We can alternatively further incentivize staking to naturally reduce farmers willingness to farm or provide lp.

The POL is so high that even if all farmers pull, we will still have one if the highest liquidity factors in the ecosystem.

For that reason I have to vote no. More liquidity will lead to even $1m purchases having little price impact.

1 Like