The benefit of TVL to backed assets

I made a post already about this but I want to be more specific. I think it would be very profitable to increase the TVL though min reward incentives on financial style coins such as DJED, iBTC, SHEN, iUSD etc.

I have a large short on BTC using iBTC and indigo protocol. I would like to reduce risk and book profits, but it is unprofitable to do so given the spread and the poor liquidity. In addition Wingriders has only 800k ish more TVL and I do probably 20 times the volume there because of that. I could do all that volume here and even more if the TVL existed.

If these backed assets have liquidity the trading volumes from arbitrage and short term trading will explode. Just taking even 5 percent away from the main min pool and giving out to these pools would make a huge difference and grow the volumes.

As for DJED no one wants to take a 1.5% mint fee. Its way too high. If we can offer something better, all that volume comes here.

The potential is massive. It is not so easy to see when the TVL is low.


1 Like