Summary
This AIP proposes to renew the liquidity mining program with Unipilot (AIP60) for another month to increase AST liquidity on Uniswap v3 and ensure a minimum token supply.
150K AST will be allocated to the mining rewards
20K AST will be cross deployed to the PILOT/ETH pool.
Unipilot will contribute an equivalent amount of PILOT to the AST/WETH pool.
Specification
150K AST ($20K) + xxx PILOT ($2K) will be used as Liquidity Mining rewards for people who stake AST/ETH LP tokens in Unipilot
20K AST will be cross deployed to PILOT/WETH pool
Rationale
AIP 60 (here) proposes to increase LP rewards for those who provide some liquidity on Unipilot. To encourage more DeFi natives to join AirSwap and build up our status in the DeFi ecosystem, we hope to improve AST liquidity on Uniswap v3.
Managing LPs on Uniswap v3 is complicated as it requires spending gas fees to recalibrate the price range. We propose to use Unipilot again to help manage the range on the Uniswap v3 liquidity pool.
Status of liquidity mining program
Our ongoing liquidity mining program with Unipilot has helped AirSwap to gain about $70K in liquidity on Uniswap v3 in return for around 500% APR (57% from Uniswap fees, and 465% from the liquidity mining program; see https://app.unipilot.io/stats).
However, this program will expire on 14 May 2022. Once the promotion period is over, LPs will have less incentive to keep their liquidity locked and the liquidity is expected to drop.
Target situation
This AIP works in tandem with AIP 62. While AIP 62 seeks to increase our protocol owned liquidity, this will take a longer time to implement. In the meantime, we propose to continue the liquidity mining program with Unipilot to maintain liquidity levels on Uniswap v3 for one more month. We will continue to evaluate the success of the program based on the amount of liquidity locked into Unipilot and the number of participants in the program.
What is Unipilot?
Unipilot saves liquidity providers from the hassle of manual oversight through automated liquidity optimization and management.
The aim of the Pilot protocol is to ensure maximum capital efficiency by allocating the right mix of capital to each of Uniswap’s liquidity pools existing on its platform.
If price fluctuates and capital goes out of the price range it does not earn any fees. Unipilot solves this problem by allocating capital to the narrowest price range to earn the maximum amount of fees.
Apart from offering optimized liquidity positions, the Pilot protocol also auto-rebalances liquidity in appropriate price ranges to cater to the changing market prices.
In addition to that, the transaction cost involved with readjusting liquidity is also disbursed by the protocol so liquidity providers don’t have to worry about the increasing gas costs on Ethereum.
Summary This AIP proposes to renew the liquidity mining program with Unipilot (AIP60) for another month to increase AST liquidity on Uniswap v3 and ensure a minimum token supply.
Specification
Rationale AIP 60 (here) proposes to increase LP rewards for those who provide some liquidity on Unipilot. To encourage more DeFi natives to join AirSwap and build up our status in the DeFi ecosystem, we hope to improve AST liquidity on Uniswap v3.
Managing LPs on Uniswap v3 is complicated as it requires spending gas fees to recalibrate the price range. We propose to use Unipilot again to help manage the range on the Uniswap v3 liquidity pool.
Status of liquidity mining program Our ongoing liquidity mining program with Unipilot has helped AirSwap to gain about $70K in liquidity on Uniswap v3 in return for around 500% APR (57% from Uniswap fees, and 465% from the liquidity mining program; see https://app.unipilot.io/stats).
However, this program will expire on 14 May 2022. Once the promotion period is over, LPs will have less incentive to keep their liquidity locked and the liquidity is expected to drop.
Target situation This AIP works in tandem with AIP 62. While AIP 62 seeks to increase our protocol owned liquidity, this will take a longer time to implement. In the meantime, we propose to continue the liquidity mining program with Unipilot to maintain liquidity levels on Uniswap v3 for one more month. We will continue to evaluate the success of the program based on the amount of liquidity locked into Unipilot and the number of participants in the program.
What is Unipilot? Unipilot saves liquidity providers from the hassle of manual oversight through automated liquidity optimization and management.
More info on : https://unipilot.io/
Copyright All proposals are public domain via CC0