Current liquidity:
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On Ethereum, INST-ETH Uniswap pool (https://etherscan.io/address/0xcba27c8e7115b4eb50aa14999bc0866674a96ecb) only has 58 ETH. Liquidity has continued to drop from the highest liquidity of 2500 ETH to 58 ETH, at the current fading rate, ETH will be exhausted next month, losing liquidity is a terrible thing for a Defi project.
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On Polygon, INST-ETH Uniswap pool only has 20 ETH liquidity.
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Some small CEXs have few liquidity.
Current incentives:
The current incentives are divided into three parts:
A, Uniswap V3 lp incentives;
B, Uniswap Staker incentives;
C, Maker/Aave incentives for positions.
A incentive have been completely de-anchored, and the price has fallen below the range. This has led to the fact that miners do not need to provide eth liquidity (very few eth, less than 0.001) to participate liquidity mining.
B incentive is too complicated, most people don’t understand it, very few people participate, and the effect of improving liquidity is also not achieved.
C incentive is basically for the big players to mine and sell.
On the whole, I think the current liquidity mining incentive scheme is ineffective. In addition to continuous selling, it has not been able to introduce new liquidity and needs to be improved as soon as possible.
Suggestion:
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To improve the liquidity mining plan to achieve the purpose of increasing liquidity, we need to evaluate the effect of each incentive plan.
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Promote mainstream CEX listing as soon as possible. On the one hand, it will help strengthen INSTDAPP’s brand building and expand the retail market. On the other hand, it will also increase liquidity. Market Maker/LP is only profitable when trades are active.
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Introduce a staking mechanism, protocol incomes repurchase $INST, and incentivize long-term holders.