Summary:
Create special Lua fields (pools) that would farm UNI, SUSHI. Each following its eligibility to farm its respective token in addition to lua.
Background:
There are 4 pools in Uniswap currently eligible to earn $UNI for another 33 more days (https://app.uniswap.org/#/uni). The 4 pools are: ETH-DAI, ETH-USDC, ETH-USDT, ETH-WBTC which are the biggest pools in UniSwap in terms of TVL not by chance but believe due to the fact that LP earns additional rewards on top of AMM fee.
Similarly SUSHI-WETH earns SUSHI when staked to sushiswap; It has highest reward multiplier at the moment, and hence the highest TVL there for same reason, believe the rewards would last longer than that of Uni’s.
Motivation:
TVL is one of the biggest asset for luaswap to stay on top of the competition, that is also needed to offer best price/spread for traders and in turns earn fee for the long term LP benefit.
If we are able to provide the similar rewards and furthermore extra Lua rewards, it will be no brainer for the LP (seeking yield) to move to luaswap.
Specification (Implementation Suggestion, Technical Feasibility, etc.):
Users would deposit UNI-v2 LP token to new luaswap field (ie. new double farming field). These new pool would farm UNI and LUA. When LP Token is staked, new codes in luaswap will take note on the user’s share and use the LP token to stake in Uniswap. Farmed UNI could be used to buy LUA which supports LUA price (ideally this can be an automated action done periodically whenever farmed UNI reaching certain threshold). The newly bought LUA can be shared within the pool based on users share.
Some of these new pools will be having very little impermanent loss as compared to Lua pairs, so we can also impose a smaller Lua reward multiplier for such double farming field, e.g. 0.2x multipler so as not to dilute too much of current Lua rewards for the other normal (single farming) pools.
Believe the specification above is technically doable but will take some development time. Certain things need to be done really fast, as you can see the UNI campaign will finish soon in 33 days for the time the proposal was written. If we can implement in let say one week time from now, we still have 30 days to double farm which is still very very good.
Similar steps can be for SUSHI-WETH, we can double farm LUA and SUSHI. So development should take into consideration and make this extensible for others.
Note:
This proposal takes into considerations of some existing ideas from other threads, discussions in telegram, and other public information available. Not diminishing the credit of the original in any way, believe the purpose is for the biggest and greatest of luaswap. Feel free to comment and discuss further to improve this proposal.
