MIP #20 - Utilizing 10 Million MGP tokens from Magpie’s Treasury to Boost Liquidity

MIP #20 - Utilizing 10 Million MGP tokens from Magpie’s Treasury to Boost Liquidity.

Abstract

Magpie is a platform offering yield and veTokenomics-boosting services across various networks. MGP is Magpie’s governance token. When MGP is locked as vlMGP, holders can enjoy governance perks and earn passive income from different income sources as it provides a distinctive chance for users to engage with the Magpie Ecosystem. Currently, the emission rate of MGP is not high, making it scarce in the secondary market. As we aim to expand our platform, this proposal suggests utilizing 10 million MGP tokens from the Magpie Treasury to enhance MGP liquidity on both Arbitrum and BNB Chain.

Motivation

As Magpie and the Magpie Ecosystem grow, it’s important to ensure robust token liquidity. Recently, there has been a trend of users purchasing MGP tokens from the secondary market. While this supports the price of MGP tokens, it simultaneously reduces their availability for other potential buyers.

At present, PancakeSwap V3 on BNB Chain holds only 1 million MGP in liquidity:

Meanwhile, on Arbitrum, a total of 1.6 million MGP is available as liquidity, shared between PancakeSwap and Trader Joe pools.

PancakeSwap:

Trader Joe:

Recognizing the significance of accessibility for users keen on acquiring MGP, we’re poised for the next move. By directing 10 million MGP into the liquidity pools, we aim to enhance user experience and foster the exponential growth of MGP.

Specification

Allocate 10 million MGP tokens from the Magpie Treasury to enhance the primary liquidity pairs of MGP on Arbitrum and BNB Chain. The allocation across chains will be strategically determined by the Magpie team.