Enhanced Incentives for Liquidity Providers on MarginX Liquidity Mining

MarginX
1

ALO, Everyone!

This is a casual suggestion to see how you all feel about it.

We’re looking to gauge interest and gather feedback from this community regarding the proposed increase in rewards for the liquidity pool on MarginX.

By doubling the rewards pool to 20 million $FX, we aim to keep the ecosystem thriving and attract more liquidity providers.

The benefits are numerous, from higher APR/APY for our existing supporters to increased activity and swapping opportunities. Plus, with the upcoming Pundi X (Function X) brand merger and the introduction of $AIFX (?), we expect even more trading activity and demand.

Love to hear your thoughts on this.

Cheers!
MarginX team


Reference:

  1. Incentives for Liquidity Provider on FXSwap
    https://forum.pundiscan.io/t/incentives-for-liquidity-provider-on-fxswap/4731

  2. Summary of Function X — Pundi X Chain Merger: Community Call (25 Jul 2024):
    https://medium.com/functionx/summary-of-function-x-pundi-x-chain-merger-community-call-25-jul-2024-e1be75bf4c06



Enhanced Incentives for Liquidity Providers on MarginX Liquidity Mining

MarginX is excited to propose an increase in rewards to sustain and grow our liquidity pool. We recognize the importance of incentivizing liquidity providers and are committed to ensuring the robustness of our ecosystem. To this end, we propose a significant enhancement in the reward pool.


New Rewards Pool Provided from Community Spend Pool (CSP)

Previous Pool: 5 million $FX (2022)
New Proposal: 20 million $FX (2024)


Benefits of the Proposed

  1. Sustained Liquidity: Continuation of the existing pool will discourage any current liquidity providers from withdrawing their funds.

  2. Increased Marketing Awareness: With the upcoming Pundi X (Function X) brand merger, marketing efforts will intensify, attracting new participants to the ecosystem and boosting transaction volumes.

  3. Higher Rewards for Supporters: Offering a higher APR/APY, potentially up to 300%, to reward our existing supporters generously.

  4. More Activity and Swapping: With nearly 100 tokens available on MarginX, increased activities in swapping $FX can be anticipated, benefiting liquidity providers.

  5. Introduction of $AIFX: The new $AIFX (?) token, part of the rebranding campaign, will drive more trading activities and demand.

  6. Launch of “Token Factory”: This feature will allow anyone to create their own tokens (ERC20-FXCore), generating a stronger network effect.

  7. Competitive Rewards: Higher or market-competitive rewards (APR/APY) will attract more interest from liquidity pool hunters.

  8. Support for Potential AI Products: As Pundi X (Function X) potentially ventures into AI products, a larger liquidity pool and enhanced rewards will be more beneficial for long-term supporters.

  9. Reviving Community Interest: This proposal aims to rekindle interest from previous community members and bring their support back.

  10. Token Redenomination: With the redenomination of $AIFX (?), the token’s value is expected to appreciate, increasing its utility alongside the introduction of new AI products.




Historical Context and Current Reward Rates
In October 2022, a proposal was passed to allocate 5 million $FX for liquidity incentives on FXSwap. The incentives have since been deployed, with positive impacts on the ecosystem. Below are the current award rates as of July 29, 2024:

  • FX-USDT: APR 10.24 %, APY 10.78 %
  • FX-PUNDIX: APR 26.13 %, APY 29.85 %
  • FX-PURSE: APR 42.47 %, APY 52.88 %
  • FX-WETH: APR 15.35 %, APY 16.59 %
  • FX-BAVA: APR 31.91 %, APY 37.57 %

Trading Activities (30 Days Average)

  • $FX: Liquidity: US$1,397,453, Volume: US$4,716,936
  • $WETH: Liquidity: US$496,585, Volume: US$777,836
  • $USDT: Liquidity: US$452,393, Volume: US$2,767,609
  • $BAVA: Liquidity: US$136,007, Volume: US$564,043
  • $PUNDIX: Liquidity: US$188,774, Volume: US$393,702
  • $HUAHUA: Liquidity: US$15,175, Volume: US$93,238
  • $AIMEOW: Liquidity: US$41,616, Volume: US$25,049

Closing Thoughts:
For those who are in the Web3 space long enough… It’s all about MARKETING!

Marketing in Web3 projects is about making noise and giving more to the crypto participants, so they can help spread the word and talk about us!

The importance of mindshare is bigger than the product itself.

  • “Marketing is all about creating a sense of desire.” - David Ogilvy

  • “The best marketing doesn’t feel like marketing.” - Tom Fishburne

  • “Marketing is about values. It’s a complicated and noisy world, and we’re not going to get a chance to get people to remember much about us. No company is. So we have to be really clear about what we want them to know about us.” - Steve Jobs

  • “A brand is no longer what we tell the consumer it is – it is what consumers tell each other it is.” - Scott Cook

  • “Good marketing makes the company look smart. Great marketing makes the customer feel smart.” - Joe Chernov



Your support is crucial to ensure the continued success and growth of Pundi X, Function X, Purse, MarginX.... Do feedback on this enhanced incentive plan to keep our ecosystem thriving.

What Do You Think?

  • LFG! Let’s Go Wild!
  • Nah!
0 voters


6 Likes
2

Let’s go! :saluting_face: +1

3 Likes
3

Finally ! It’s a big YES.

Since there is an appetite to make noise, how about 100%+ APY for AIFX pairs for X(time or pool limit)?

Especially for AIFX pairs with mainstream tokens (BTC, ETH, SOL)

1 Like
4

Stated … :blush:

  1. Higher Rewards for Supporters: Offering a higher APR/APY, potentially up to 300%, to reward our existing supporters generously.
4 Likes
6

Let’s go! :saluting_face: +1

3 Likes
7

ALO, team!

Time’s running out as the current incentives pool is subsiding, and we have 92% votes for this casual draft.

Can we proceed with governance proposal soon?

@DavidK @indra @Peng

Cheers!

4 Likes
8

Hi Orbitant,

I think we received positive feedbacks from community, and we can proceed with governance proposal this week.

9 Likes
9

This is a sizable requested amount, let’s all vote and deploy this incentives. :slight_smile:

6 Likes
10

Thank you team for pushing this proposal forward!

$2.5m worth of $FX for liquidity pool rewards, but first we need 1.3m $FX more to go! LP providers, contribute $FX to get more! LFG!

https://starscan.io/fxcore/proposals/62

3 Likes
11

Hi @orbitant !

Could you please describe in more details how you see the dispatch of rewards amongst all LP pairs ?
As you know, current rewards are distributed unevenly between all current LP farming pairs (using a “weighted” parameter in the contract).
I think it would be fair to describe which pairs we intend to reward, and how we intend on rewarding them regarding each other.

Thanks.

Regards,
@FrenchXCore

1 Like
12

Building on the above, we should obviously offer high APR for AIFX pairings. But to attract new investors, offer decent incentives for main stream pairs, especially stables (e.g Dai, USDT, USDC).

13

Agree.
I’d say rewards should mainly focus on main AIFX pairings :

  1. AIFX/ETH (very important since we need to “hook” AIFX price to a mainstream altcoin like ETH)
    2a) AIFX/USDC
    2b) AIFX/DAI
    2c) AIFX/USDT
  2. AIFX/PUNDIX
  3. AIFX/PURSE and AIFX/BAVA

What about AIFX Cosmos-partners : OSMO, CHIHUAHUA, etc. ?

Others (memecoins) should be rewarded, but a lot less…

Regards,
@FrenchXCore

1 Like
14

Meow, what about aimeow/fx pair?

15

ALO, everyone!

The MarginX team will roll out a strategy that could really help us all maximize our returns, whether you’re providing liquidity or actively trading.

Over the next two years, there’s a plan to distribute 20 million $FX tokens, beginning with 1 million $FX to continue supporting the existing liquidity pools.

The remaining 19 million $FX will be deployed at a later date with an enhanced strategy.

Let’s dive into the initial part so you can see how to get in on this and make the most out of your participation.


Initial Deployment: 1 Million $FX

Continued Support for Existing Pools:
FX-USDT, FX-PUNDIX, FX-PURSE, FX-WETH, FX-BAVA
Current APR Range: 9.802% - 41.1%
Current APY Range: 10.3% - 50.79%


This initial 1 million $FX deployment will continue to support these existing pools, maintaining stability and encouraging ongoing participation from current liquidity providers.

Future Deployment: 19 Million $FX
The remaining 19 million $FX will be deployed at a later date with an optimized strategy to align with the upcoming introduction of $AIFX tokens, as part of the rebranding of Function X to Pundi AIFX.


Objective:
The future deployment is designed to attract more awareness beyond the existing Function X (Pundi AIFX) ecosystem. With MarginX planning to add more chains (such as Zeta…etc) to our trading platform, $FX (and eventually $AIFX) will serve as the base pair moving forward.

This enhanced strategy aims to boost the demand for $FX ($AIFX) tokens by offering attractive rewards across a broader range of participants.

Until the next update, meanwhile - do vote to support this proposal.

https://pundiscan.io/fxcore/proposals/62

4 Likes
16

good good :sunglasses: :sunglasses:

2 Likes
17

Hi @orbitant !

For this 1st million of $FX, do you intend to allocate them the same way it is currently in the masterchef LP smart contract (for each pair) ?

Regards
@FrenchXCore

18

ALO, @FrenchXCore,

To avoid disruption and sudden withdrawal of liquidity, we will maintain with the existing incentives as it is.

Initial Deployment: 1 Million $FX

Continued Support for Existing Pools:
FX-USDT, FX-PUNDIX, FX-PURSE, FX-WETH, FX-BAVA
Current APR Range: 9.802% - 41.1%
Current APY Range: 10.3% - 50.79%

Cheers!

2 Likes
19

Seems good to me for the launch (total alloc points as it is currently, and each pool alloc points as is).

I would definitely love to see something like this :

  • Fixed-$AIFX value but quantity-limited NFTs (for example 100, 500, 1000, 5000 and 10000 $AIFX NFTs) : Gen-0, then Gen-1, etc. The lower the gen, the more incentives…
  • NFT increased long-staking or long-farming incentives (3 months, 6 months, 1 year, 3 years) so that it keeps value within the ecosystem ($AIFX/$USDC for example, or $AIFX/$WETH) : those incentives need to increase with the vesting period…

This would be the equivalent of what we see in the real-word assets, especially for young (and less young) private companies.

What do you think ?

Regards,
@FrenchXCore

1 Like
20

Hi lords,

Baklava actually has a $BAVA/$AERO pair on Aerodrome and the apy is consistently 250% to, 300% + (example this week is 330% shown in img)

Team Baklava and Aerodrome foundation jointly incentives the pool, we each come out with equivalent amount of $BAVA and $AERO as incentivize, $BAVA as incentive for ve$AERO voters, and $AERO as incentive for TvL liquidity provider.

With Pundi AIFX incentive coming up, we will be super delighted if we can also do something similar on MarginX, thank you! :smiling_face_with_three_hearts:

Screenshot 2024-08-26 at 12.57.14 AM
Screenshot 2024-08-26 at 12.57.14 AM899×747 49.3 KB

21

Will the team be using the idle 19m $FX for trading or leave it in the wallet waiting to be deployed?