TIP24 - Build Protocol Owned Liquidity (LON 流动性激励的后续处理)

Background

• Based on Tokenlon’s litepaper, 10,000,000 LON is reserved for liquidity incentive for one year until 24th Dec 2021
• Phase 7 of liquidity mining will end on 9th December 2021, with liquidity mining lasting for a year. The remaining budget for liquidity mining stands at 2,690,190 LON
• Current numbers for the two liquidity pools are as follows -- Uniswap Pool: LON/ETH 3,765,011 LON + 1,489 ETH -- Sushiswap Pool: LON/USDT 2,298,000 LON + 4,244,000 USDT

Proposal

We would like to propose a Protocol Owned Liquidity for the LON token. This is after taking into account the current LON treasury and trading fees on average. Under this proposal, users will no longer receive rewards for providing LON liquidity.

• Details of the proposal are in the table below

Pair Token	Fund source	Initial amount
LON	Liquidity reserved	2,690,190
USDT	Fee collected	per LON pair amount

• Benefits of this change -- By focusing LON liquidity in an AMM pool, we improve price discovery and trading depth of LON -- Under the current liquidity mining scheme, many users receive LON and sell it on the open market. By having the protocol take charge of liquidity, we can prevent the selling pressure of LON and stabilize the LON price. -- Under the new proposal, the treasury will consist of other tokens such as ETH and stablecoins. In the event of a bull market, the LON treasury will increase in value with these tokens. In bear markets, it will not have a huge decrease in value, giving the team a stronger hedge. This will come from a portion of the fees collected from the platform

• Relevant figures

	Statistics	Remarks
Multi-Signature Wallet (Treasury)	- Treasury: 1,114,259 LON; - LON Remaining Liquidity Mining Budget: 2,690,190 LON	Moving forward, funds from the treasury will be placed in a separate wallet independently

Proposed Action Items

Vote for one of the 2 options below to decide on changes to LON liquidity mining

Voting Rules

• Addresses with more than 0 LON or xLON can vote
• Addresses currently participating in LON liquidity mining or holding the respective LP tokens can vote (including unclaimed LON reward)
• Voting start time: 2021.12.1 12:30 pm UTC+8
• Voting end time: 2021.12.3 12:30 pm UTC+8

Voting Options

• A. Continue with the current liquidity mining
• B. Stop the LON liquidity mining from 9th Dec and shift to a protocol owned liquidity

---

背景

• 根据 Tokenlon litepaper 内容，10,000,000 LON 可被用于流动性激励，原计划持续一年，至 12 月 24 日结束
• 第七期流动性挖矿将于 2021 年 12 月 9 日结束后，流动性激励预算余额为 2,690,190 LON
• 在持续的流动性激励下， LON 的两个流动性池 -- Uniswap 上的 LON/ETH 池：3,765,011 LON + 1,489 ETH -- Sushiswap 上的 LON/USDT 池: 2,298,000 LON + 4,244,000 USDT

提议

基于目前社区财库和协议手续费沉淀，协议自建 LON 流动性池 (POL, Protocol Owned Liquidity)

交易对	资金来源	初始数量
LON	剩余流动性激励预算	2,690,190
USDT	协议手续费捕获	按 LON 价值 1:1

• 协议自建流动性，能够带来一举多得的好处： -- 作为 LON 的市场流动性供给，在 AMM 协议中提供价格发现，交易深度和手续费捕捉 -- 剩余的 LON 流动性激励会锁定在 AMM 池中，将会减少未来获利卖出的市场抛压 -- 丰富社区财库的资产配置，除了 LON 之外，增加稳定币的仓位，同时稳定币仓位也能够帮助协议和项目团队在市场低迷的情况下正常运转

• 相关数据

	明细	备注
多签钱包	- 社区财库: 1,114,259 LON; - 流动性激励（余额）: 2,690,190 LON	社区财库未来将转入独立的钱包进行运营

目的

由社区治理投票，决定后续的 LON 流动性激励机制

投票规则

• 持有 LON、xLON 或 LON LP token 的钱包地址均能参与投票（包含未认领的 LON 奖励）
• 治理投票开启时间：2021.12.1 12:30 pm UTC+8
• 治理投票结束时间：2021.12.3 12:30 pm UTC+8

投票选项

• A. 保持现状，继续使用剩余预算奖励 LON 流动性供给者，流动性激励时间延长
• B. 12 月 9 日之后暂停流动性激励，按本提案由社区财库自建流动性