Improve the liquidity of INST

Current liquidity:

  1. 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.

  2. On Polygon, INST-ETH Uniswap pool only has 20 ETH liquidity.

  3. 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:

  1. To improve the liquidity mining plan to achieve the purpose of increasing liquidity, we need to evaluate the effect of each incentive plan.

  2. 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.

  3. Introduce a staking mechanism, protocol incomes repurchase $INST, and incentivize long-term holders.

4 Likes

I want to say that in the past period of time, we have made great achievements in the project. The project team is great, innovative, and functional. The continuous update and research and development are respectable. This is also the reason why many users have been supporting the project and holding Token patiently.
However, we should pay more attention to the empowering role of Token, gradually increase more focus and liquidity, and expand more user groups.

Yes, compared with traditional finance, the very important factor in DEFI is that it mobilizes the power of the community, attracts the community to participate in governance through TOKEN, and enjoys the benefits of project development.
It is very important to ensure the sufficient liquidity of the protocol TOKEN and to match the development of the project. I admit that the team is working very hard and has made a lot of progress. I just hope that the team will also pay attention to the voice of INST Holders.

I fully support all proposals. Moreover, the team must inform the community about the roadmap for at least the next 6 months.

1 Like

Uniswap Info Volume 24h on Polygon is 0, total liquidity is 19 ETH

No liquidity, No volume. The current liquidity cannot reach the effective distribution of tokens, and newcomers are afraid to buy (because they cannot exit with low slippage after buying). Hope that the team can pay attention to liquidity issues, which is now a disaster for traders and holders.

2 Likes

The liquidity mining thus far has distributed a lot of INST, but has also created a lot of selling pressure of the token. Specifically, the latest Uniswap staking rewards have incentivized users to swap INST for ETH whenever their position falls out of their range, which makes the price drop further. This has been an ongoing cycle since September without any positive catalyst. This is scheduled to end January 15, 2022.

I’m curious to see what happens once LM ends. I would love to have further conversation around INST staking and how that can be incorporated into Interop or other processes. I would also support further LM ideas, but would most likely be a “no” vote if they were similar to the existing programs.

2 Likes

I thought several following ways:

1.Stakig for protocol fee income.Stake INST and get wINST in return,wINST could be used for voting and gain part of protocol fee.

2.Strengthen staking mechanism like VeCRV.The longer user stake INST,the higher proportion of protocol fee and the larger voting power he will gain.

3.Applying PCV for LP pool. LPs could get the INST with discount at the cost their LP share,it’s just like OlympusDAO bond

4.Treasury buy-back and add liquidty on DEX.As you talk about buy-back INST with protocol fee, part of fee could be used for INST buy-back, and part of fee coud be used for buying Ether or other tokens, then add INST-ETH or INST-XX pair into the pool.

3 Likes

The staking could be rewarded with INST as well if we consider staking pool be the security module for protocol, once the protocol gets exploited,the staking pool will be used for risk compensation firstly.

1 Like

In addition, the plan for liquidity mining needs to have clear KPIs. What benefits does the cost we pay bring to the platform? Is it necessary? I give an example of Balancer LM, Additional KPIs for Liquidity Planning - General Chat - Balancer