AirswapWhale
commented
4 years ago Will support this just as long as rewards have a vesting schedule. Something like vesting over a year receiving: rewards*(1/365) per day.
This will keep farmers looking for a quick profit from insta dumping. We should look for people willing to provide liquidity while looking out for the Airswap ecosystem.
Insta dumling doesnt provide any type of value. Instead, long term holders and supporters will still reap the rewards. We should give incentive to Airswap supporters and that's why I'd like to see rewards with a vesting schedule.
This aligns everyone's incentives:
- Liquidity is there for users.
- LPs still receive their rewards and are interested in the future of Airswal.
- Token holders don't get insta dumped.
Everyone wins.
ejwessel
wjmelements
dmosites
Summary
AirSwap is a peer-to-peer RFQ style trading network. Every trade on AirSwap requires an existing liquidity provider (LP) to be available as a web server, a delegate smart contract, or an individual person manually communicating trades over-the-counter (OTC).
To help grow the automated trading network, we propose that liquidity providers that run servers and complete trades (liquidity mining) are rewarded with AST. This proposal aims to improve network health and give LPs a greater voice in network governance.
Specification
Today, AirSwap tokens are staked by liquidity providers to announce the location of a server ready to respond to RFQs. Liquidity rewards take into account both the stake amount and volume traded through MetaSwap in ETH or USD (via stablecoins) for a given time window.
Each run of the rewards program will be for a specific time window with a specific total reward amount to be distributed pro rata according to liquidity provider scores. If the inaugural run is successful we may schedule additional future runs.
After the window has closed, a script will run to calculate liquidity rewards and a report will be published on this issue. Each individual liquidity provider is to be scored as follows.
*Individual Reward = (Stake x Volume) / (Total Stake x Total Volume) Total Reward**
Stake and volume are to be calculated using their smallest units: AST has 4 decimal places, ETH has 18, and USD has 2. The following is an example calculation of AST rewards.
Once rewards are calculated, they will be deposited into a smart contract from which participants may withdraw their individual rewards.
Sybil attacks. We are aware of the potential for and will determine suitable methods to prevent abuse, which may include participant registration or network analysis.
Voting. The vote will be to execute a trial run to distribute 100K AST to AirSwap LPs active during the month of November, 2020. Vote on this proposal at https://vote.airswap.io/
For more information on the AIP process see AIP #1.
Rationale
This proposal aims to help grow the network and increase governance participation by liquidity providers. Taking stake amount into account ties rewards back to the original token utility and adds some friction to participation in order to reduce potential abuse.
Copyright
Copyright and related rights waived via CC0.