Incentivized liquidity for Luaswap on Tomo is coming. It seems like a good time to start a discussion about which pools to incentivize.
Speaking as an investor and trader who is active, but far from a whale, Eth gas fees are paralyzing right now. I’d like to be taking 10% from many of my positions to take profits, but the transaction costs would eat up 10-50% of the profit!
My suggestion is to provide incentives almost exclusively for tokens that are not traded on the major centralized exchanges. If I can send my tokens to those exchanges, that’s easy enough and I do it. But I have nowhere to send tokens that are only traded on the dexes. These are the tokens I’d have an incentive to bridge to tomo, either to trade, or to provide liquidity! (And this is where the comparative advantage of Tomo will be the highest)
So, my suggestion is to focus on
- Lua – Dex-coin pairs (where dex coins are coins that are not yet tradeable on major Cexes.)
- Lua-Eth, Lua-WBTC, Lua-USDC, Lua-USDT, Lua-DAI, Lua-BNB to facilitate people trading in and out of the Dex-coins.
- Avoid pairs where the Dex-coin already is highly incentivized in some other liquidity mining or farming option. (e.g. ALBT is not on a major exchange, but has highly incentivized pools)
- Avoid pairs that are incentivized on Pancake-Swap.
And yes, I suggest routing all pairs through Lua (just like Thorchain with Rune). Luaswap doesn’t need to compete hard with Uni and Sushi and the Cexes on trades like Eth-USDT, USDC-USDT
If someone wants to make those trades, they can do it through the Lua pair, and the savings on gas will more than make up for the extra 0.35% hop!
Here’s looking forward to the resurrection of Lua liquidity,
Oren