Increasing liquidity for $IDLE

🗂 Proposals 💡 Ideas & Improvements
1

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:

  1. Making UI improvements to improve LP visibility and accessibility
  2. Creating additional incentives for providing liquidity
  3. 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?

4 Likes
2

As a data point, I pulled out of Uniswap pool because I wanted to use IDLE in governance.

I seem to recall some project managed to implement voting with LP tokens in addition to its main governance token, but don’t remember which one. I would be interested in something like this for IDLE.

4 Likes
3

Is staking the primary mechanism most projects use to incentivize liquidity? Eg encourage people to stake, solve process then provides liquidity on uniswap using those tokens and uses the returns to pay interest to stakers?