Discussion about Liquidity Provider Rewards and single CTX staking

Hello everyone,

We are approaching October and CTX rewards for ETH/TCAP and ETH/CTX will soon end.
With the launch of CTX staking for governance, I was wondering what the community thinks in general about CTX issuance.
Should CTX only be rewarded for governance staking or do we want to continue with rewards issuance for liquidity providers?

Would like to hear your thoughts on this.

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Seeing great conversation about this on discord, here is the beginning of the discussion: Discord

How much liquidity are we seeing on SushiSwap vs. Gemini?

This is current data from Nansen. Most of the supply of CTX is on Gemini now.
So we have think about if it makes sense to keep LP rewards on Sushi when most of the liquidity is on CEX.

To my opinion you should keep incentivice LP on DeFi platforms (like sushiswap). As holding you’re own keys is one of the primary reasons people are attacted to Crypto. With Gemini (as a CEX), we will miss a specific Group of investors who are in for the long run with the strong belief of independency in the form of DeFi. Based on economics, a higher APY will attract more liquidity untill the right equilibrium (liquidity vs APY) is reached. Just give it time as we are still early! CTX staking could go alongside the LPs, which will help diminish SELL pressure of CTX. Option to include locking period is still a smart way to spread sell pressure over a longer period of time. :+1:t2:

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I say both at first. Word of mouth is best exposure to attract more to stake and hold

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I agree, a mix of both will be healthy to keep the spirit of decentralization.
Personally I would sugesst to only reward the TCAP pairs (maybe launch rewards on Polygon) to stimulate TCAP minting.

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I think both should be applicable, I just want to know the details of how the staking will be rewarded, is there a lock up period? It sounds a lot like Tezos Baking, I delegate my XTZ to a baker and the baker pays me out after a cycle of 3 days. What is the plan with CTX staking in this concern?

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i have brought a few people to this project lately because of the LP rewards and i have a substantial few more that would be interested in providing Liquidity and Hodl’ing CTX. I hope the rewards program rolls over for another 6 months

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What if we started off with staking closer to 20% at launch and moved towards 12%. Would it be possible to incentivize those who stake earlier and lower the APRs once we the project market cap grew larger etc. there’s some precedent I believe at these numbers.

We need to manage the outstanding supply as to not flood the market. I am against LP that significantly increase the circulating supply. More over, it would be prudent to set restrictions on a forward basis how much can be added in a certain quarter as to dilute existing holders.

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I Think liquidity pools should stay , they will atract New people to the project
The way rewards are done its a great way to keep investors in for the long run

Keep both but reduce the APY on the liquidity pool rewards so that people aren’t just farming and dumping. maybe transfer the APY over to governance stakers since they’re the ones doing work

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There should be incentives for voting/designated voting. If you’re a designated voter you should get a percentage of the gas or APY. For example, if APY is 12% than .5% goes to the designated voter. This provides incentives and accountability and focus to votes.

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I would like to see continued CTX rewards for staking liquidity on the Sushiswap TCAP/WETH and CTX/WETH pools. CTX/WETH may have cooled down, but it’s utilization rate was off the charts certain days and it would just cause massive volatility if a lot of that liquidity was removed and dumped. I came from being a Gemini CEX investor, but Cryptex has so inspired me I got my own wallet and created a vault, minted TCAP, and added to both pools. Now that I am in the DEX world, I absolutely believe that CTX as a DAO needs to keep incentivizing it’s presence in that space.

The TCAP/ETH pool has been very quiet, but it is still such a small market cap of TCAP in circulation that I would like to see more TCAP pairs added to the rewards liquidity pools, especially TCAP-WBTC. I do believe there will always be a premium on the oracle price as long as TCAP is collateralized with 150%+ collateral, but it should be, it is a super premium asset. TCAP/WBTC is still a great way for traders to long/short bitcoin dominance even with price not matching oracle peg.

Perhaps another vault CTX reward for TCAP in circulation but by total amount minted over time with locked/unlocked rewards. Incentivize those who are unlocking CTX and selling for ETH to add collateral and mint more TCAP, which is the real fuel to CTX price growth… the amount of fully collateralized TCAP in circulation from Cryptex Vaults.

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