Title of Feature: Reduce the number of incentivized dex pools
Author(s) Names: The Liquidator
TLDR Summary:
- Main idea is to increase the liquidity while keeping the inflation at the same level via reducing the overall number of DEX pools that receive rewards (currently 6 pools for AKRO/ADEL)
- Currently there are USDC, ETH and wETH pools for AKRO and ETH/wETH pools for ADEL
- I would suggest reducing the counter pair (for both AKRO and ADEL) to either ETH/wETH or USDC (USDC would be one less volatile part and might mitigate IL)
- With USDC there would be two incentivized only (instead of 6): AKRO/USDC and ADEL/USDC (this number could be increased to 4 if you want to have both Balancer and Uniswap as an option)
- If you want to go from AKRO to ADEL you can simply go AKRO/USDC -> USDC/ADEL and vice versa
- There is enough liquidity from other liquidity providers that would cover ETH/USDC
Benefit:
More liquidity will go together with a higher token price stability, this can attract more trading volume, which in turn could attract CEX to list the tokens
Potential negative consequences:
Less incentivized number of pools for people who might prefer holding ETH over USDC (or vice versa)
Summary
I think the benefits will clearly outweigh the negative consequences. Less DEX pools will also mean a higher APY in the DEX pools, which will automatically attract more liquidity. The rewards could then be adjusted on a weekly basis to keep the liquidity constant/increasing over time.
Thank you for considering