Proposal: Should the DAO incentivise pLTC liquidity providing on Ethereum?

Proposal: Should the DAO incentivise pLTC liquidity providing on Ethereum?

Summary: This proposal would introduce incentives to lock LTC within the pTokens system for it to be moved on Ethereum. Specifically, incentives would be awarded when providing liquidity for pLTC on ETH within a given liquidity pool.

Abstract: Liquidity mining initiatives are populating Ethereum’s DeFi. While existing incentives are given to holders of Ethereum-based and Bitcoin-wrapped assets, Litecoin holders are currently excluded from the DeFi ecosystem. Having incentives for pLTC on ETH would fill this gap.
Introducing incentives to provide liquidity for pLTC on ETH is aimed to increase the amount of LTC moved to Ethereum.

Motivation: A liquidity mining initiative for pLTC on ETH would give the Litecoin community the possibility to join in the DeFi ecosystem, while creating a benefit for Ethereum’s DeFi expressed in terms of added liquidity locked in it. Its aim is to increase the total value locked within the cross-chain pTokens system and to increase liquidity for the pLTC trading pair on decentralized exchanges.

Specification: The DAO fund is aimed to grow the pNetwork ecosystem. A way to achieve this goal is to boost the adoption of the pTokens system. This proposal proposes to direct part of these funds towards liquidity mining initiatives whose goal is to create a benefit both for the success of the project and for the overall market.
The first trial of an incentives programme connected to the pNetwork ecosystem is currently running in the form of “PNT on Steroids” (more at p.network/steroids), a mechanism to increase liquidity in the PNT/USDT pool on the Uniswap decentralized exchange. If approved, this proposal would expand the Steroids programme to other assets, starting from pTokenised LTC. If approved, a more structured discussion on how to implement the liquidity mining activity for pLTC would be started on the relevant pNetwork channels. For example, the initial budget proposed would be similar to the one leveraged for the trial PNT on Steroids initiative equal to 400k PNT per month (maximum capping) with a proposed duration of the pLTC on Steroids programme of 2 months. Such parameters would be however discussed with the community and in conclusion, approved.
Note that, if approved, the proposal would not exclude the possibility of liquidity mining activity for other assets (such as pBTC). It does, however, give short term priority to creating incentives for pLTC on ETH.

1 Like

I propose that the pool to be incentivized is created on Balancer and is pLTC/pBTC/LINK/BAL, each coin at 25%

2 Likes

Yeees, give us LTC on Ethereum!

Can’t wait to see your next addition. Maybe XLM or BCH?

2 Likes

Love this proposal, LTC deserves more attention for sure. I will take a look at Balancer too, looks like an interesting project to follow!

2 Likes

Balancer is a tool that’s growing a lot and an interesting alternative to Uniswap. pTokenised BTC is indeed available on Balancer as part of PieDAO’s BTC++, but it would be interesting to see pLTC there as well. Thanks for your suggestion!

In the coming months we’d like to add more pTokenised assets. Depending on the underlying consensus mechanism of the native network of each asset and of the host blockchain where to move it, there may be different development efforts for different assets. When opening DAO proposals for the introduction of a new pTokens bridge we’ll make sure to specify the estimated development time as well as the expected benefits.
I’ll make sure to add XLM and BCH to the wishlist of assets proposed by our community!

Thank you all for joining the discussion! The voting process on this proposal will close shortly - currently, 94% of votes are in favour of creating an incentive for pLTC liquidity providing on Ethereum (https://mainnet.aragon.org/?#/pnetwork/0x2211bfd97b1c02ae8ac305d206e9780ba7d8bff4/vote/1/). Looking forward to further discussions on how to actually implement the incentive!

Thank you all for sharing your feedback on this first pNetwork DAO proposal!

Yes, there is also this pool: https://pools.balancer.exchange/#/pool/0xc3fb9e4fbd8332f775129cd4f196ab74b72fb556/ but I think it is useful to expand the offer. I hope this proposal of mine can be taken into consideration in the future.