Baadges for long term GHST liquidity providers

Proposals by Gotchi Gov'nuhs
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Hi everyone!

I made this thread to discuss an idea that came to mind.

If you are a liquidity provider on Quickswap you may have noticed that QUICK rewards keep going down for our pairs every week, and that our liquidity has been going down for a while, and even more so after the recent market crash.

Right now IMO, there are still good incentives to provide liquidity for the GHST-USDC pair: you can earn twice the amount of FRENS with the same amount of GHST than if you were to stake those GHST. This can be used to earn a decent amount FRENS while limiting your exposure to the GHST token. You get a little impermanent loss though. Considering the low QUICK rewards right now, the above might be the best incentive to provide liquidity for this pair, since the use case and returns of frens are still very limited. Financially speaking, it might arguably not be so worth it.

The QUICK pair has better rewards, but then also a much higher risk and more impermanent loss as well. Still, I feel that for such a pair the rewards are low and it’s not very attractive to LPs as opposed to other pairs and farms. But even if it was, we probably don’t want all of our LPs to abandon the USDC pair.

We also have seen that the team recently rewarded the uGOTCHI LPs with a baadge, so why not do the same for GHST LPs to further incentivize providing liquidity? Financially speaking, it will make no difference, but at least some more members of the Aavegotchi community may consider providing liquidity (maybe?). There could be a few different baadges in relation to how long and which pair you provided liquidity for, so it’s not a reward for just joining the pool, it’s more of a reward for providing liquidity for the project and sticking with us, even when the financial incentives are not that great. The periods I had in mind were 1, 3, 6 and 12 months, but open to suggestions. We could also set reasonable min. amounts to be eligible, and whatever we can come up with.

Just to be clear, I don’t know if this is a priority right now, our liquidity seems to be enough and I heard @coderdan say before that baadges require some work, so this is more of an idea for whenever we think getting more liquidity or working on these badges is a priority.

As I said, this is just an idea, let’s hear your opinions, suggestions, thoughts on this or any other ideas you might have and turn it into a signal proposal. Thanks!

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I think this is a cool idea and would support AS LONG AS there are fixed time frames for determining which Gotchis are eligible. Baadges currently have quite a high developer overhead, as we have to sort through smart contracts and even smart contract events to sift out which addresses are eligible. Then prep, test, and deploy the airdrop.

I think it’d be fun to reward LPs with the baadges so. So keen to hear some discussion on how to implement!

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Thanks for your prompt reply! Yeah, I’m aware of the overhead, that’s why I mentioned that it might not be a priority now and also wouldn’t want the team to get drawn away from more important stuff, but let’s see what happens to our liquidity in the coming weeks/months.

As for the time frames, I didn’t think about that TBH, but can’t we just maybe time-lock the LP tokens in the staking contract for different periods of time? Couldn’t we make it actually trustless and fully automated if we just add time-locks to the staking contract @coderdan ?

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I like this idea but do not know enough information on how to implement this best. If a standard time frame were to be developed without killing the dev team, I would back this proposal. I sadly have no baadges and would love to earn one for staking GHST. Maybe we can also have frens milestone baadges as well (1,000,000 frens earned for example, etc.). This would be cool and would work to encourage long-term staking.

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If we airdrop the baadges for QUICK LP and GHST stakers for the first time, I’m sure many ppl will be much more eager to LP for the second time, in hope of a second airdrop

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This is a great idea!

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Support that. So let’s come up with a baadge design so the devs can’t back down :stuck_out_tongue:

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I think the design is probably not a lot of work judging by Dan’s words, the main issue is the work it requires to distribute them to eligible addresses if I’m not mistaken. I’ve shared this thread in the devs-chat and tagged Dan in my previous reply to look into time locks or any other possible solution to automate the process, so let’s wait and see if a dev comes up with a solution. Thanks for your support!

1 Like