by
0x4122…664E
CIP019 - Move CLAM/MAI Liquidity to TetuSwap
Voting ended over 3 years agoSucceeded
Exciting opportunity incoming from our Polygon allies at Tetu!
We have worked out an agreement with the team there to incentivize OtterClam moving its CLAM/MAI liquidity (about $780k) from QuickSwap to their native TetuSwap. This comes with several advantages to the protocol:
- Tetu has agreed to airdrop us 150k Tetu tokens every month for 6 months while we are providing liquidity to their DEX. Tetu has expressed their desire to work with us long term, so the initial 6 month period could very likely be extended.
- TetuSwap works differently than a more traditional DEX. Instead of liquidity sitting in a smart contract waiting to be used for swaps to earn trading fees (which is what our liquidity is currently doing on QuickSwap), each underlying asset is deposited into it's own yield farming vault to earn yield and autocompound while it is idle. When a user wants to make a trade in the MAI/CLAM pair, the necessary assets are removed from the vaults to execute the swap. This is especially beneficial to the protocol as it stands now, since we are still a low-volume project, trading fee income is low and our liquidity is mostly idle. I would expect the MAI and CLAM vaults to earn only a little yield (say, >5%), but it's more than we had before and we still earn trading fees.
Some potential downsides:
- TetuSwap is much less known than QuickSwap, potentially making it harder for investors to acquire CLAM. This risk can be mitigated by providing links to the TetuSwap CLAM pair wherever possible and logical.
- TetuSwap only charges a 0.1% trading fee, which is less than QuickSwap's 0.25% or UniSwap's 0.3% trading fee. However, because CLAM trading volume is relatively low, we should benefit more from the underlying asset yield farming than we would from higher trading fee percentages.
Off-Chain Vote
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- Author
0x4122…664E
- IPFS#QmXV87Cm
- Voting Systemsingle-choice
- Start DateApr 06, 2022
- End DateApr 09, 2022
- Total Votes Cast12.45K vPEARL
- Total Voters86
Timeline
- Apr 06, 2022Proposal created
- Apr 06, 2022Proposal vote started
- Apr 09, 2022Proposal vote ended
- Oct 26, 2023Proposal updated