DAO Proposal: Strengthening iAsset Liquidity Pool Incentives on WingRiders DEX
Summary
In light of recent developments in the decentralized exchange (DEX) ecosystem, the proposal is to enhance liquidity pool (LP) incentives for iAssets on WingRiders DEX with Indy rewards. With the release of WingRiders V2, WingRiders introduced a suite of innovative features designed to enhance user experience, strengthen security, and ensure sustainability. WingRiders DEX supported the Indigo protocol from its start, proving its dedication to the Cardano ecosystem.
Context
Currently, a significant portion of liquidity incentives is directed towards other DEXs, notably SundaeSwap. The release of WingRiders V2 has introduced significant improvements that can offer better returns for liquidity providers, enhanced trading experience, and greater long-term stability for liquidity pools segregated across multiple DEXs.
Key features of WingRiders v2 include:
- Routed Swaps and PathFinder
This feature allows users to swap between two tokens even if there isn’t a direct pair (liquidity pool) available. The PathFinder algorithm precisely scans all available routes for a given token swap and selects the most efficient and cost-effective path. This system ensures that users receive the best possible outcome by evaluating multiple routes and dynamically adjusting to market conditions. Whether it’s finding a direct pair or leveraging intermediary tokens, PathFinder provides seamless and optimal trading experiences.
- Liquidity Management - Zap In/Zap Out Functionality:
This feature allows users to add or remove liquidity using just one token, simplifying the process of liquidity provision and withdrawal. It eliminates the need to hold and balance both assets in a pair, making it more convenient for users to participate in liquidity pools.
- Trading Fees
Additional Fee Structures: The new smart contracts support dynamic and additional fee structures, ensuring that fees can be adjusted according to market conditions, making it fairer and more adaptive to different trading scenarios.
- Sustainability and Throughput
Ensuring the sustainability and efficiency of our platform is crucial as the Cardano blockchain continues to expand. By optimising transaction sizes and increasing throughput, WingRiders are not only enhancing the performance of the DEX but also contributing to broader environmental and economic goals. By leveraging Plutus V2 inline scripts and datums, along with advanced Plutarch capabilities, their batching agents can now batch up to 30 transactions per batch.
- Security
Security remains a top priority to protect user assets and maintain trust in the platform. Implementing trustless and non-custodial protocols ensures that users have full control over their funds at all times. Additionally, a permissionless system guarantees open access, allowing users to manage their assets without restrictions.
- Dual Yield Farming
WingRiders V2 allows users to earn dual rewards through the integration of WRT token rewards alongside third-party rewards, creating a more lucrative yield farming experience for liquidity providers.
Proposal Details
The proposal is to incentivize the following WingRiders V2 Liquidity Pools to earn rewards in Indigo token. Note WingRiders Liquidity providers committed to allocate a substantial amount of liquidity and precise token pairs are to be confirmed by the Indigo Working Group based on the final TVL in respective pools.
- ADA-iUSD
- iUSD-iETH
- iUSD-iBTC
- USDM-iUSD Stableswap
- DJED-iUSD Stableswap
By enhancing the above pools with rewards WingRiders V2, it will:
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Attract higher volumes of liquidity: WingRiders V2 will drive more liquidity providers to mint iAssets and deposit to WingRiders V2, and ecosystem benefiting from better returns and reduced risk.
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Strengthen the iAsset ecosystem: By fostering deeper liquidity pools on WingRiders, iAssets will see enhanced trading efficiency and stability. Having an LP with multiple DEXes is a secure way to diversify, segregate the liquidity, and avoid a single point of failure. This approach ensures greater stability for your liquidity.
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Drive community engagement: WingRiders V2 platform’s dual yield farming, cross-chain operability, and streamlined UI will attract more users, making WingRiders the go-to destination for decentralised trading of iAssets.
Conclusion
WingRiders V2 represents a significant leap forward in decentralised trading technology. By allocating liquidity incentives back to WingRiders, the iAsset community can enjoy a more rewarding and efficient trading experience. Liquidity providers, traders, and community members are encouraged to support this proposal and make WingRiders again a home for iAsset liquidity.
VOTE: Strengthening iAsset Liquidity Pool Incentives on WingRiders DEX poll
***UPDATE:
In a cooperation with Liquidity provider and major iAsset holder, transfer of iAssets to Wingriders has been completed. Here’s our proposal for new distribution of INDY rewards to DEXes based on iAssets TVL.
Note that per our review, your current model did not consider if there is any liquidity in pools and you still distribute rewards. For example there is 0 TVL in iUSD/USDM pool on Minswap and you propose 304.36 INDY rewards for that pool.
For new distribution, we have reviewed TVL across all DEXes - more details and rationale here: INDY REWARDs for DEXes
| INDY FOR DEXes | 9 483.58 | ||
|---|---|---|---|
| iASSETs TVL | 11 615 039 | ||
| Minswap Liquidity Pools | TVL | INDY | RATIO |
| ADA/iUSD | 3310000 | 2702.59 | 0.08% |
| iUSD/iBTC | 693000 | 565.83 | 0.08% |
| iUSD/iETH | 384000 | 313.53 | 0.08% |
| iUSD/USDM | 0 | 0 | 0.00% |
| TOTALs | 4 387 000 | 3 582 | |
| SundaeSwap Liquidity Pools | TVL | INDY | RATIO |
| ADA/iUSD | 1570000 | 1281.89 | 0.08% |
| iUSD/iBTC | 292000 | 238.42 | 0.08% |
| iUSD/iETH | 189400 | 154.64 | 0.08% |
| iUSD/USDM | 5000 | 4.08 | 0.08% |
| TOTALs | 2 056 400 | 1 679.03 | |
| WingRiders Liquidity Pools | TVL | INDY | RATIO |
| ADA/iUSD | 3190000 | 2604.61 | 0.08% |
| iUSD/iBTC | 771639 | 630.04 | 0.08% |
| iUSD/iETH | 1210000 | 987.95 | 0.08% |
| iUSD/USDM | 0 | 0 | 0.00% |
| TOTALs | 5 171 639 | 4 222.60 |