Consider/research LPs to maximise rewards and minimise IL
J
I think we should consider which DEX we will use for pooling our liquidity before just blindly choosing Uniswap.
Balancer, for example, allows a more diversified pool (more than just 2 tokens and any weightings) and I think would help mitigate impermanent loss. Also ihf is already whitelisted there and so providing liquid earns BAL automatically.
I request that someone who knows about this stuff works out the most optimal way for us to provide liquidity while reducing IL.
A
Agape
I think we should go for a platform that offers the most liquidity and synergy options. Uniswap is the most liquid DEX at the moment, and has the most liquidity bots floating around. Additionally, many yield aggregator farming platforms utilize primarily Uniswap pools, so use of Uniswap could ease the development and rolling out of further ICAP use cases. Balancer is technologically more interesting, but their impermanent loss technology didn't end up living up to the hype.
Currently (Dec 2020) in my opinion the best impermanent loss protection is the insurance+lockup based method that Bancor uses. However, the defi scene keeps evolving so fast that by the time ICAP rewards start, Bancor might have been dethroned. Myself, I think liquidity and use cases are more important factors than impermanent loss protection. Those who want to provide liquidity ought to be prepared for the risk of impermanent loss, I believe. Instead of minimizing impermanent loss risk, I think we should aim for maximizing liquidity providing profit.
F3DaO - TraDEX.curvy.one
As a follow-up to the discussion, J has written up a post to further explore the feasibility of utilizing LP staking for ICAP incentives.
maaft
What about launching our own DEX governed by ICAP holders?