Excellent direction @JohnWinstonL thanks for sharing your thoughts. Big fan of this approach.
Happy to expand on why this proposal makes a lot of sense in my mind:
The addition of a USD-stable coin & FLOAT pairing brings a huge amount of utility via basic pair, I’m thinking of this pair as one of the “killer apps” for FLOAT. Quintessentially, this is about converting centralized stables to decentralized stables at the click of a button, and making this easier for traders across the board with added liquidity is highly positive.
Incentivizing community growth via market-neutral strategies, is a feature I’d say is an absolute must for us at this point considering market conditions. The FLOAT-USDC pair would not only bring utility to the protocol, but it would provide powerful incentives that wouldn’t result in price exposure to LPs, therefore dissuading BANK dumps through lock multipliers as well as the potential BANK-only pool.
Lock multipliers are a very good way for launched, early-stage protocols to retain a degree of safety and attract higher-conviction supporters and LPs. Definitely not mutually exclusive with @paulm 's ideas on additional incentives relating to bonds being used to boost the basket, etc. I believe the multiples are competitive yet not overly aggressive compared to other lock-multipliers available across the space right now. So the numbers on this look good, but we should be open to tuning these numbers as the protocol progresses and continues to develop.
I particularly like the long-term approach to FLOAT-USDC as from a trader’s perspective, you’d be looking at market neutral returns which then could be compounded through longer term holding. This would be massively important in this market, where BANK volatility is almost a given until we bring more features and adoption to the protocol. On top of that, if the BANK-only pool gets added, it’d be even better for ones looking to maximize returns through the FLOAT ecosystem. Long term believers in FLOAT would receive higher incentives than practically anywhere else in the market right now. This would be monumental for the protocol IMO, and one of the strongest G2M strategies I could think of right now.
As to BANK-ETH sLP and FLOAT-ETH sLP, keeping incentives (as well as liquidity) on those would be extremely important and the proposed numbers make a lot of sense to me.
Props to the team on putting thoughts into this.
Would happily vote in favor of the above proposal.