WIP-26 Allocate 35k WING to pWING-ETH liquidity incentives on Sushiswap (For)

Discussion
1

UPDATED PROPOSAL: 8 weeks of WING rewards from a 10k WING rewards pool, split proportionately amongst liquidity providers to the pWING-ETH pair on Uniswap.

Background
In WIP-01, we voted to reduce the WING distribution rate during the “WING Mining Celebration” campaign and were left with 70k unallocated WING. Then, in WIP-12, we voted to allocate 35k of that WING to marketing. We still have 35,000 WING leftover.

New exchange listings would allow Wing to reach more audiences. For example, WING is not listed on Binance US, so it’s not easy for American traders to get WING.

Before considering paying exorbitant listing fees on more centralized exchanges, we propose to give some of these funds as rewards to liquidity providers on decentralized exchanges. DEXes are quickly outpacing CEX growth and have a much wider reach.

Program Details: 8 weeks of WING rewards from a 35k WING rewards pool, split proportionately amongst liquidity providers to the pWING-ETH pair on Sushiswap.

At the current WING price of $13, this is $56,875 (4,375 WING) / week. At a simple target goal of $1m pWING-ETH liquidity, LPs would net 295% APY, not accounting for trading fees or impermanent loss.

Listing on SushiSwap would also allow us to apply to Onsen, in which pWING-ETH would be eligible for SUSHI rewards as well. But, we can discuss other DEXes as well.

A potential risk for pWING-ETH LPs is impermanent loss, which is hard to avoid when providing liquidity in AMM DEXes. Nonetheless, the trading fees earned combined with the incentives from this program should help offset the risks.

We can later vote to allocate more rewards and/or extend the liquidity mining program with funds from the WING DAO treasury.

3 Likes
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Is it also not possible to list WING on Binance.US???

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Yes, it is possible. And it is our goal to be available on more centralized exchanges like Binance.US as well. But it’s a hefty listing process. So we want to list on more DEXes in the meantime.

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4

Great idea! I believe this activity will boost Wing’s popularity and have positive impacts on Wing’s eco.

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It takes a lot of wings, hope the good aspects will last longer.

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In a short period of time, Wing’s liquidity will increase, but WING’s liquidity may drop significantly after the activity ends. I hope there is a way to maintain the same liquidity as during the activity.
At the same time, it is also necessary to discuss with the development team how to implement the rewards.

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I agree to give some of the 35k WING as rewards to liquidity providers on DEXes, which will attract more liquidity providers. Sushiswap is a well known DEX and allowence to apply to Onsen is an extra benefit. Other DEXes such as Uniswap and Bancor are also good choices. I prefer to list on at least 3 DEXes to get more exposure.

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Just curious about is there a particular reason for 8 week?

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No particular reason for 8 weeks. That’s roughly two months trial period to get a sense of how it goes and what needs to be adjusted.

Listing on 3 DEXes for exposure is a good idea but I worry that there is a slippage trade off. One larger pool results in less slippage than three smaller pools.

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You’re right, this is a concern. What other projects have experienced after their liquidity pogram ends is a drop in TVL, but sometimes the inertia is large enough that there’s still a good amount remaining.

Others, like Ampleforth, choose to extend their incentives by 10 years to ensure liquidity.

At 4,375 WING / week, we have enough WING in the community fund to last 6.5 years of liquidity mining if we really needed to.

But I don’t believe it’ll come to that. Just a little incentive at the start to kick off the momentum.

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Thx for replying. I didn’t think about slippage and now I see why you propose to list on one DEX. Well, I think it’s hard to choose between Sushiswap and Uniswap. On one hand, there are more users on Uniswap. On the other hand, SUSHI rewards are appealing. Maybe try one this time and the other next time.

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13

I like this idea, but a little worried about the budget. Maybe 10k WING would be enough for the first attempt. The distribution rate of WING rewards can be set at 0.002 WING/s, that is 172.8 WING/day. If the program lasts for 8 weeks, that would be a total of 9676.8 WING. If the program lasts for 2 months, for example starting on February 1 and ending on March 31, that would be a total of 10195.2 WING. I think starting on the first day of a month and lasting for 2months would be better because it’s easier to remember.

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The number of users on Uniswap is about ten times of that on Sushiswap. If without SUSHI rewards, the gap will probably be even greater. Obviously, Uniswap will allow us to have a wider reach.

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Yes, I think so. There’s no need to bet all the 35k WINGs on one thing. About 1/3 at a time is much less risky.

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Dex selection: I think Sushi is best choice. Sushi is the 2nd big Dex now. The Onsen project gives suppliers more incentives. We can try Uniswap after this one.
Event period: 8 weeks is okey for me.
WING Incentive amount: I think 35k is too much. 5-10k would be appropriate. As you calculated above. $1M liquidity would be 295% APY if price remains. 50%-100% is stilling appealing and competitive, plus there’re SUSHI incentive as well.
Mechanism: pWING-ETH liquidity suppliers get LP tokens from Sushi, then deposit it into pWING incentive smart contract. The pWING distribution speed should be 0.001-0.002 WING/s, and distributed to whoever deposit the LP tokens into smart contract. The weight should be $value of the LP tokens.

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17

Fair points everyone.

Based on Cedric, Jan7, and zzZZ’s suggestions, I propose a reduced 10k WING liquidity mining Uniswap program to be voted on asap, followed by a Sushiswap program next contingent upon the Onsen discussion with their community.

18

That is a very good proposal. Let us put it to voting.

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19

I love it that way we can open more doors for WING !!!

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20

Good idea! Let’s give it a try.

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i think we should also get some attention on Binance a good part of our costumer came from there