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Unifi Protocol DAOUnifi Protocol DAOby0xE82a43687829D003b91250f041bA22163ba6eaC10xE82a…eaC1

Liquidity Issues Part 1

Voting ended over 4 years agoSucceeded

The biggest problem that this project has currently is liquidity. Simply put, low liquidity equals high slippage which results in low amounts of transactions and low APR. Currently BSC has the most liquidity but the top token UNFI has less than $500k liquidity. As of now you are better off purchasing UNFI on a centralized exchange if you were going to make a large purchase.

Would a whale make a purchase on the platform? Could a whale make a purchase on the platform? Also, anyone who claims their UNFI rewards with the intent to sell the token is better off sending the UNFI to an exchange w/ better liquidity then trading on the platform due to slippage. This creates a hole in the closed loop system.

Clearly this is a problem but what are the possible solution?

The ideas that I would like Unifi to explore:

1)Unifi provides liquidity for UNFI on ETH & BSC blockchain; 100% of the UP rewards received by the team are then redeemed to purchase more UNFI for liquidity pairs or just 50% of UP rewards redeemed go back to developers, and 50% back into liquidity pairs.

  1. Unifi teams up w/ a liquidity provider & provides liquidity for stable coins across the blockchains. This would ensure capital acquired is safe & sable for Unifi and the provider; Unifi & liquidity provider get to redeem UP so there is value to both parties. For the everyday users, UP redemption value will increase across all blockchains, and transaction volume should also greatly increase with the ability for anyone to make large trades on Unifi.

This referendum is to bring attention and open up discussion around this issue & to eventually have the Unifi Team submit a core referendum to have a final solution provided.

Off-Chain Vote

Approve
32.4K 66.7%
Decline
16.17K 33.3%
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Timeline

Oct 29, 2021Proposal created
Oct 29, 2021Proposal vote started
Nov 30, 2021Proposal vote ended
Oct 26, 2023Proposal updated