There is a high likelihood that the proposal to turn off the GHST Bonding Curve will pass. It is essential to have a plan of action in place to address the liquidity shortage that will result from turning off the Curve. Fortunately, we have a variety of well-developed protocols that can assist us. I am creating this thread to initiate the conversation on this topic.
There are many DEXes on Polygon, the most notable ones are:
Sushi has been in crisis for the last year at least, not the best choice for us to say the least;
Kyber is an OG protocol, well developed but losing competition to other DEXes. It doesn’t have liquidity managers built on top of it which is a pain in terms of liquidity incentivization for the DAO and for liquidity providers to manage their positions;
Uniswap v3 dominates the Polygon DEX market with 80% of total volume; Gamma, Arrakis and Defiedge are building on top of Uniswap;
Quickswap v3 is similar to Uniswap v3. It has been Aavegotshi’s main DEX and partner since it moved to Polygon. PC has a strong connection to the team, but Quickswap’s volume and userbase have dropped dramatically since Uniswap was deployed on Polygon;
Curve is a great alternative to the Uniswap v3 model. It uses a concentrated liquidity model. It’s easy to incentivize liquidity – it’s built into the protocol natively;
Balancer positions itself as a liquidity protocol for DAOs. It’s easy to incentivize liquidity, there is less impermanent loss for liquidity providers, but there is lower capital efficiency compared to other DEXes.
Agree with pretty much everything you’ve put here. Just a few notes:
When I discussed with the QS team, they said that indeed Uniswap does do the most volume, but mainly because it has the lowest fee pools. He claimed that although Uni does more volume, Quickswap pays out more fees to LPs. (I haven’t looked into the numbers yet, though)
Also worth noting that Quickswap offers LM activities like Syrup pools and QUICK rewards we can negotiate with them, which could improve our liquidity during the important first 3-6 months after curve closing.
Would be nice to involve more teams to this discussion. I think it’s a great opportunity for both projects (Aavegotchi and DEX we choose). Our dicision will significantly impact TVL of any of these DEXes.
