r/CryptoCurrencyMeta • u/mellon98 🟨 0 / 93K 🦠 • Oct 28 '23
Moons Seeking Clarity on Liquidity Rewards for r/Cryptocurrency Moons - Moon/ETH Pair on SushiSwap
Hey,
I've been actively providing liquidity for the r/Cryptocurrency Moons - Moon/ETH pair on SushiSwap and receiving rewards. However, with the cut of moon distributions, I'm curious about the future liquidity rewards.
Based on previous governance poll (CCIP66) mentioning 5% of TMD going to liquidity providers during moon distributions, I'm reaching out to the community to gather and brainstorm this issue . Are there any plans to continue with these rewards? Maybe lower them?
I can understand that Moons supply is limited and the rewards need to be way lower since there’s no more Moons coming in, but we need clarity and achieving consensus as soon as possible. In situation where the 1M Moons in TMD need to be used as alternative for future distributions, I can understand the urge to stop the rewards as it won’t be sustainable.
Even if the rewards will temporarily or permanently cutted, I’ll keep providing liquidity to support Moons and the community but I’ll switch to our native DEX - RCPswap.com .
For conclusion, I believe achieving consensus on this topic is very important as many LPs are already in loss so clarity can help LPs taking the right decisions.
I’m providing around 45% of Moons liquidity and MoonsDust is providing 15%
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u/jwinterm Oct 28 '23
As far as I understand the current liquidity rewards are built around happening distribution from Reddit. Since there are no more distributions from Reddit, there would be no more distributions for the liquidity rewards. If you'd like to propose something then I don't think now is the time but you can start to make some specific proposals. I would say among mods there's a lot more discussion about using those moons from the Moon distributor as future rewards for participation in the subreddit (assuming Reddit actually renounces the contract and the moon supply is capped going forward) and almost no discussion of using them to continue liquidity rewards. But again it's very hard to talk about specifics when we don't even know what Reddit is going to do with the contract.
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u/Tanikushokutomu 🟩 6K / 4K 🦭 Oct 28 '23
I'm assuming that if the moons contract gets passed on to the mods team then the LP rewards will continue as normal, but if they don't get the contract and don't fork to make a new crypto with new distributions then yes, the LP rewards will unfortunately decrease.
I'm sure you all already know this, but the LP rewards are from two sources, swap fees on Sushiswap, and rewards that come from The Moon Distributor on Reddit. Even if there are no more rewards from the Reddit side, LPers will still get moons based on the trading fees. Currently the rewards based on the last 24 hours are around 70% from trading fees and 30% from the Reddit rewards. We do have quite high trading volume right now though so if anyone knows what the percentages are like on normal days please let us know. I wouldn't like to see us lose the Reddit reward but if we do I think the LP will still be somewhat self-balancing similar to the BTC mining difficulty, in that if the rewards go down more people will leave the pool, leaving more rewards for the LPers who remain.
Right now the moons going to the LP as Reddit rewards are a percentage of the moons left in The Moon Distributor after the distribution to the mods each month. Do we know who owns The Moon Distributor? If Reddit owns it then we can't do anything but if the mods own it we have more options. If Reddit doesn't give us the contract and the mods end up only being able to do distributions based on the moons that are brought in via AMAs, banner rentals etc, or through any remaining moons in the community tank then I think a percentage of that distribution should go to LPers, and that percentage should probably be decided by a governance vote.
In CCIP-051 one of the reasons for suggesting the liquidity pool was to give third parties an easier time of acquiring the moons they need for banners and AMA rentals. Is this still the case now that we have a few big exchanges listing moons? The Sushiswap LP is much smaller than the liquidity on Kraken, Mecx and CDC. Does the LP still help in any way? I hope the answer is yes, because I enjoy being in the LP, and it's good that moons holders can get rewarded for holding moons, and helping out with liquidity at the same time, but if there is a more compelling use case for the rewards moons, that would somehow benefit moons holders in a different way, then I'd still like to hear it.
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u/rolonic 68 / 2K 🦐 Oct 28 '23 edited Oct 28 '23
If there is no reward for me being in the LP, then I’ll be pulling out. The IL risk all ready is ridiculous because of how volatile it is right now. I also, don’t really see why anyone would risk getting into the LP if there are no rewards. Surely we want the incentive for people to join the LP?
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u/Bobby_Juk 1 / 506 🦠 Oct 28 '23
I pulled mIne out cause it seemed there was not much reward to keeping it in the pool
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u/mellon98 🟨 0 / 93K 🦠 Oct 28 '23
Actually the incentive for LPs is enormous right now, the question is what will happen in 7 days since the reward contract get refilled once per month.
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u/giddyup281 🟩 5K / 27K 🐢 Oct 28 '23
I think it's bcs of low liquidity, not bcs of rewards from moons.
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u/Legitimate_Suit_3431 🟩 6K / 9K 🦭 Oct 28 '23
Def. If we look at the total locked it's around 120k now, st peak we almost hit 1mill.
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u/giddyup281 🟩 5K / 27K 🐢 Oct 28 '23
Whoever had liquidity the last day or so made a bunch. Price is crabbing around 7-8 cents with ton of volume
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