DIP-01: Liquidity Provider Incentives

Abstract

As we get closer to our V2 launch, the Dracula team has decided to leave a core decision up to the community regarding liquidity provider incentives. This vote will last 48 hours, and although the decision can be changed once decided, we hope to make the result of this decision final.

Proposal

Provide incentives to two different pools for liquidity providers, one being the DRC / ETH pool on Uniswap, and the other being the DRC / ETH pool on LINKSWAP. These incentives will be split evenly between these two pools.

Pros

Having an incentivized pool on both LINKSWAP and Uniswap will allow users to have multiple options when transacting DRC, which adds to our decentralization. Having an incentivized pool on LINKSWAP also creates an opportunity for synergistic partnership between our platforms.

Cons

Having the liquidity split between two pools drastically reduces the amount a user can purchase at a time, without using an aggregator such as 1inch. Splitting the liquidity also splits the rewards into two different pools, which can lead to a less attractive APR for liquidity providers in only one of the pools.

Vote

Yes - There should be an evenly split liquidity provider incentive between both Uniswap and LINKSWAP.

No - There should only be one incentived liquidity pool, which will be on Uniswap.