I wanted to start a thread on what we should set the ANC liquidity incentives to once we move to Astroport. As I write this, the proposal to migrate liquidity to Astro is ongoing (and I assume it will pass). Some discussion on this subject has already occurred on that thread, however as it will be a separate proposal, I thought a dedicated thread would make sense.
Here is my opinion on what we should do (and really this is just a starting point to kick off a formal conversation):
Start by providing the same LP rewards that we currently do. However, over the course of a month we taper it to 0.
- By initially supporting LPs, we would ensure that all of the liquidity moves over. Having split liquidity between two exchange doesn’t help (I guess I’ll need to get used to using something other than the Terrastation UI for ANC swaps, but that’s a minor inconvenience)
- By tapering off our rewards, we would avoid overpaying for liquidity
- Astro’s rewards should be more than enough to incent ANC liquidity