[This is basically copy & paste from a discussion on Discord]
I looked up our DEX liquidity on Ethereum and it is basically non-existant. Uniswap liquidity recently dropped below $100k… that’s absolutely insane for a 70 million market cap project.
Now I get that everything is happening on Matic and it makes sense to incentivize migrating from Ethereum, but I feel like we really need some incentives for liquidity on mainnet. It’s also not a very attractive investment for larger players, since they can’t buy without doing KYC or moving the market on Uniswap.
With $100k liquidity on Uniswap you couldn’t even buy something like 10k GHST without immediately losing over 13% to slippage. This means that there is currently no way to buy GHST without doing KYC or bridging your assets to a completely new ecosystem (Polygon) - that most people know very little about. I think we should at least give people the option to buy on an L1 DEX and we’d need some sort of incentives for that.
Here is where Bancor could come into play. Bancor is a DEX that provides impermanent loss (IL) protection after 100 days of providing liquidity. It is growing quite fast and has added a lot of new projects recently (including axie infinity (AXS)). If we were to use Bancor, It would immediately become the largest pool on L1, with all aggregators routing through it. That would mean that it could attract some decent volume which would result in high fees to LPs. This would of course create further incentives for complete outsiders to provide liquidity for GHST.
The problem with getting listed on Bancor is that (a) you need 25k staked BNT (vBNT), around 180k USD, to create a proposal and (b) we’d have to reach a quorum of 40% for BNT holders. I know that this completely contradicts my first comment on “not doing anything fancy” but I think it could be interesting to put part of our treasury funds into Bancor. This would allow GHST holders to provide liquidity on an Ethereum DEX while being protected against IL and only exposed to GHST price. Maybe this idea is too crazy but I’d love to hear some thoughts on it.