I really like the ideas of staking for #1 and #3 where you get the reduced performance fees in addition to locked staking.
One thing we might want to consider as well here while we’re talking about staking is liquidity incentives, and I’m wondering if we could tie this in with the ‘staking for a reduction in performance fees’ so that we incentive liquidity providers as well.
For example, instead of staking simply $IDLE tokens, users can also choose to stake LP tokens for a specific pairing we want to promote liquidity for (ie. WETH/IDLE LP tokens).
I’d argue that we should provide greater incentive for an investor willing to stake LP tokens over just $IDLE tokens as it benefits all participants in the protocol. A simple incentive could be that we provide a greater reduction in performance fees for LP tokens staked versus $IDLE tokens, or we could allocate a % of $IDLE tokens from the treasury to incentivize LPing.
The importance of $IDLE liquidity can’t be understated, and by doing this, we’d be able to:
- Improving slippage and overall trading conditions for all market participants
- Improve LP yields for existing liquidity providers as token price becomes more stable, while attracting new participants to begin providing liquidity
- Provide an additional form of yield and utility for $IDLE, hence increasing the value prop of $IDLE and attracting a new class of investors onto the protocol