[1IP-1] 1inch Trading Incentives - Discount , Swap Fee & Slippage Subsidies

Original 1IP-1 Forum Post

Summary

• Introducing Exclusive Trading Incentives - Discounts , Swap Fee & Slippage Subsidies

Abstract

1. Platform Fees Reduction for those who are staking 1inch in the DAO proportional to the amount of tokens that have been staked.

2. Platform Fees Reduction for Achieving Certain Personal Total Trading Volume + Trading milestones on 1inch DEX

Motivation

The Feature is used by Many Centralized Exchanges like Binance etc. But when it comes to DEX there's not Much Competition .

1inch DEX on other Hand is one of the Best DEX out there & can take advantage of Such Implementation which will help the Project to move in new directions & Compete against Centralized Exchanges & with other DEX'es as well .

Specification

1. Platform Fees Reduction for those who are staking 1inch in the DAO proportional to the amount of tokens that have been staked [For 1inch Stakers] Note: The exact ratio can be voted on

Specific example for a 1:1 fee reduction for 1inch staked:

Anton stakes 2000 1inch tokens in the DAO 1inch price = $5 2000 * $5 = $10,000

This means that Anton has a 100% fee* reduction on trades >= $10,000 in value.

2. Platform Fees Reduction for Achieving a Certain Personal Total Trading Volume + Trading Milestones on 1inch DEX proportional w.r.t to the 24hr Volume on 1inch DEX [For NON 1inch Stakers ] Note: The exact ratio can be voted on

Trading Milestones will be Dynamic & will depend on the Total Volume Being Traded on 1inch in 24hrs & also on Daily/Weekly/Monthly Trading Frequency of the user .

Note -

• Fee Reduction %age is Dynamic & Will increase with the increased Trading Volume of user .

• Fee Reductions will not be Permanent & will start resetting/decreasing gradually once the user completely Stops doing trades on 1inch DEX after a certain period of time .

[ Optional ] Discount Generation -

• Setting up a Separate Discount Funding Contract [DFC]
• Split Referral Rewards & Allocate %age of those Funds that will go to DFC
• Refilling of DFC on Weekly/Daily Basis
• Distributing Certain %age of Discounts & Cashbacks out of DFC based on most frequent & most Volume traded users over the Leaderboard .

Benefits

1. Offers another functionality to the 1inch token.
2. A new benefit of 1inch token for the user of the platform instead of just those who are governing the platform.
3. Offers long term price stability due to locking mechanism
4. New attraction to the 1inch platform as an even cheaper way to trade
5. More Trading Volume Surge will benefit 1inch Stakers in DAO by providing APY boost as Volume Surges .
6. More Participation in Governance as more people holding 1inch Tokens

Drawbacks

Sam buys $1,000,000 USDC worth of 1inch tokens

Stakes 1inch in DAO Makes many trades quickly to take advantage of fee reduction >= $1,000,000 Un-stakes 1inch Sells $1,000,000 USDC worth of 1inch tokens

Possible Solution

2 Choices -

• Lock - in : Those who want to take advantage of the fee reduction from staking 1inch in the DAO need to lock in their tokens for a certain time period .

  1. Hard Lock - in : Tokens unlocks only after full period ends .
  2. Liquid Lock - in : Provides flexibility & Tokens Unlock slowly with time .

   Note: The length of time can be voted on
  

• 1inch LP - If Trader don't Want to Stake they can also Provide Liquidity to Top 5 1inch Liq. Pools

Trading Useless Shitcoins for Fee Reduction

Possible Solution

Granting Fee Reduction on Approved Pools & Tokens at 1st & then Gradually opening it to other well known tokens too by Voting etc .

Top $1INCH holders may have more advantages when collecting Trading Discount than others .

Possible Solution

If you collect discount more than 10% of current DFC allocation , 30% of it will be used to buy back $1INCH at the market price & Redistribute them immediately to Governance Stakers etc. . This feature helps deflate the supply and increase the price of $1INCH for long-term $1INCH holders.