Incentivised Behavior of Liquidity Providers Through a Receipt of Reputation NFT

Minswap is currently in a transition stage from incentivized liquidity through Yield Farm rewards to revenue sharing. While others are exploring means of achieving this, there exists a reticence that it will make the user experience too complicated due a preponderance of tokens relating to different aspects of user interactions with the DEX (xMin, vexMin, veMinLP). However, an identification of a point of capital inefficiency in latent liquidity presents an opportunity for innovation that allows for synthesis of the best incentivised yield farming programs, while also leveraging the NFT capabilities of the Cardano blockchain to simplify user experience. This proposal goes hand in glove with the dissemination of whitelisted tokens through Protocol Owned Liquidity and Protocol Owned Assets. This dissemination will mark the transition from liquidity bootstrapping for Cardano Native Assets on the Dex, since completed, to collective enrichment from the growth of the ecosystem as a whole.

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I like this type of gamification to incentivise desired actions. I believe that incentives rule this world so we should build as such. I would personally love to use this “Receipt of a Reputation (RoaR) NFT” system. I also believe that if we have an easy gamey system that people can build on people will be more likely to stay long term as they would squander what they built otherwise.

If the Receipt of a Reputation (RoaR) NFT would become successful there would surely be a second hand market so this could be a source of royalties, I do however wonder if the NFTs would become too abundant if there is no system to prevent this.

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I agree with the last paragraph. People could farm fully evolved RoaRs with small amounts of capital disseminated throughout multiple wallets. This was a concern that i forgot to mention in Caveats and Concerns. However, i intend for fully evolved RoaR to take quite some time to unlock (6 months at least, or something like 100 liquidity binds/250 zaps/1000 stakes) this long time horizon should deter even the most diligent merc.

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That’s a yes for me!

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Definitely a unique and interesting idea to capture retail into holding and compounding their MIN into LPs!

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Congrats for the rich ideas. I am confident that Minswap team will study this material carefully in search for good solutions and alternatives to stimulate and attract min holders and Liquidity Providers.

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Maybe a cap on how many points one could gain in a time period, so a combination. (Probably what you ment)

i think the idea is awesome!

that’s a solution hmm. i anticipate there are a multitude of unintended consequences however which way we parameterize it lol

oh thanks mate, havent seen you for ages!

Thats true! But it’s fun to think about. Anyway, I think it’s a great idea.

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This is freaking brilliant mate :clap: :clap: :clap: :clap:

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Fantastic idea. Innovative as heck. Min better listen!!

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Thank you. MinTeam are wonderful and partner with the community implementing our most meritorious ideas. If this proves to be one of them, I will be honored, but they are under no obligation.

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Thanks for sharing the content

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