• Open Talk

  • Let's incentivize Uniswap LPs for mass adoption

Scoopy suggested that I write a proposal on whether we should incentivize Uniswap LPs. I believe this would bring a lot of adoption and attention to Alchemix. It would bring ALCX to Uniswap traders in general, where $1,250,000,000 in volume is traded every day.

I shared Alchemix with a few friends and they immediately questioned the legitimacy of the project after seeing the low liquidity on Uniswap, which remains the dominant DEX -- with 4X the volume of Sushiswap.

In this new DEX era, boosting ALCX liquidity on Uniswap would be akin to getting ALCX listed on Binance. Uniswap is where all the eyeballs are and is where most people go first to look into and invest in new projects.

Here is what ThetaRAX said on the topic:

“I’ve had to reply to tweets asking about low liq on Uni. Avg person doesn’t check CoinGecko to find out for themselves. I agree about Uni/DexTools as many find new tokens or liq that way”

Here is what Scoopy said:

“We have no plans to incentivize uniswap LPs at this point. We’ll have our snapshot up and in full action by the weekend though, so if there is enough support, maybe we could allocate a little there Write a proposal on the forums and let the community decide.”

Curious what you all think. Love what you guys are doing!

Think initial reaction from people supplying LP on Sushi will be concern over their rewards. The % of rewards would need to be reallocated/split between them. But they can also LP on uniswap as well. BadgerDAO offers rewards for both UNI and Sushi stakers, and it's not uncommon to just split between them. Remember also that LPs get trading fees, so more trade volume = more money, in addition to rewards. I would seriously consider voting for this, but would be curious what the new farming distribution would be (current distribution maybe split with the Sush alcx/eth LPs? The new alcx/eth uni pair wouldn't be something the curv alUSD/3pool LPs could participate in so you would see No votes from them if you reallocated part of their reward)

Improving exchange listing should be the goal of any token, and thankfully we dont need to pay huge fees to exchanges anymore like the ICO days, just decide where to earn rewards.

On one hand "The DAO will focus on funding projects that will help the Alchemix ecosystem grow, as well as the greater Ethereum community." sounds like we should vote yes on this because it will attract more users.

On the other hand the team did not plan for Uniswap so they do not see the need to do so. Also, I'd advocate on being selfish here to not split up rewards over 2 DEXs because the community (as is) that is fine with using Sushi does not see this as a farm and dump opportunity.

I'm not a fan of gate keeping but rather would like to see a community building budget before doing this kind of outreach.

I see no need currently to incentivize uniswap pools. When v3 releases and it's hype, it's a different story, but so far it offers nothing more than the sushi LP and rewards would have to split.

I would move to delay action on this until Uniswap v3 ships. Rumor is their layer 2 solution will go live this month or next, and it's likely that pools will need to be migrated over anyways, so what's the harm in waiting a few more weeks?

I like the discussion here so far. From what I gather the pros are:

-uniswap has higher volume, so a net win for LPs
-uniswap could bring an air of legitimacy for those who only use uniswap

And the cons are:

-it would split liquidity
-uniswap is upgrading to v3 soon(tm) and qould require yet another migration for users/farmers
-Sushi has been a firm supporter and diverting rewards and thus TVL/volume to Sushi wouldn't be the best show of loyalty

Keep up the discussion, especially if you have other points to bring up. Socratic style always leads to the best answer

I'd support leaving Uniswap until V3 or whatever the next stage is and weighing pros/cons then, at least for the time being; Alchemix is still very young. Sushi have been really impressive lately imo and most defi users learned enough to be using Alchemix will already be familiar with it.

I agree that Uniswap is important -- but worth incentivizing post v3 and possibly via Optimism (if that becomes dominant)

I'm in favour of splitting the distribution of rewards for Alcx/eth LPs, across both UNI and Sushi. More liquidity, transactions and visibility. It can only be good for the growth of Alchemix as a money lego.
Potentially timing could be in a week or two. Not sure about waiting for V3 as a target date, as it could take weeks or months.
Are we sure the SUSHI team think this is a not so positive move going forward? Is it worth reaching out to them on it?

I’m not sure I love this idea. I do agree that down the line, being on Uniswap is something worth considering, but Alchemix is less than two weeks old, and not showing loyalty to SushiSwap this early on is disagreeable to me—especially since they were helpful to us at our very beginning. Along with this, splitting the rewards among pools would hurt the OGs who got in on the Sushi LP since day one and who have been reked with IL. Those rewards are making the IL worth it. Cutting their rewards and asking them to pay fees to migrate to get those rewards back also seems a bit disloyal.
I understand wanting to reach a wider audience, but this would split our liquidity. And if the only thing stopping someone from investing in ALCX is that it’s not on Uniswap, or that they didn’t do enough research to realize that we do have a very liquid token, then I’m not sure that’s an audience worth being disloyal for. Especially with a protocol that is built on top of so many others and relies on many others, I think loyalty and making friends/partnerships (as cliché as that sounds) is worth its weight in gold. I’m sure Sushi knows that at some point they won’t be our only DEX, but until that’s closer to a necessity or something that would bring a substantial amount of value that would otherwise be missing, I don’t see this as being worth it. To be honest, I’m not sold on it having many tangible benefits. If you are a serious DeFi investor, a token not being on Uniswap isn’t going to deter you from buying into something you believe in. I’m actually in favor of being ignored by people who are just looking for the hot new token.

The posts have swayed me, I am now on team wait-a-bit

I'm in favor of providing rewards to Uniswap, but when there is a v3 on L2. That would be a huge motivation besides getting new folks in. Right now you would only split rewards. I say we should wait.

I like this idea but I think for now waiting is the best course of action, at least until V3 of UNI is out then reassess.

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