Interestingly, we currently don’t have a lot of liquidity for the $IDLE token. ~80% of the volume is traded on Uniswap while ~20% is traded on Sushiswap, with dominant trading volume at Uniswap sitting at only ~$600K liquidity.
This is a huge issue IMO as it deters new people (particularly whales) from coming in. We’re also seeing a lot of volatility with the token as noted just 3 hours ago, roughly ~$50K in $IDLE sell pressure caused the price of the token to move by +20%, from ~$17 back to $14.
It’s interesting to see liquidity so low, because current yields for LP in both Sushiswap and Uniswap is actually quite decent. I did a quick calculation on Uniswap yields and it seems like yields were well over 150% APR with 24 hour trading fees sitting close to $3K. Sushi also has an IDLE/WETH onsen that yields ~120% APR.
Should we discuss ideas on how we can ramp up liquidity so that we can bring more people into the protocol? At a high level, there are three solutions:
- Making UI improvements to improve LP visibility and accessibility
- Creating additional incentives for providing liquidity
- Work with other protocols to add $IDLE for farming
IMO, increasing liquidity for $IDLE should be a priority for the protocol. Do you guys agree and if so, what do you suggest we do here to increase liquidity?