Zwap use case reresection

Summary: increase zwap token utility

Abstract:
Zwap holder and Lp’s should receive % of the fee of every token traded on ZilSwap in the traded token denomination.

Motivation: As of now zwap token has no utility , no real use case and, no incentivization to hold or accumulate. The value of the Zwap token gravitates to 0 . This undermines whole reason to list tokens on Zilswap. Receiving the % of all trading fees from every LP will greatly benefit the Zwap tokens , token holders and the Zilswap platform as a whole. By receiving a % of the trading fee form every token traded on Zilswap the Zwap token will become a valuable asset. Raising valuation of the token will drove more people to provide lP’s, more investors to invest and more people to hold and stake Zwap.

Specification:
Switcheo " Demex" has a great working reward/ distribution model for stakes and LP providers. It should be adopted to use with zilswap to accommodate this proposal.

For:

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Poll:

5 Likes

Overall, a good proposal. There is desperate need for more $ZWAP use cases to help it rise in value.

Things that would have to be worked out are obviously the actual percentage that will be distributed to LP’s and holders + the percentage of distribution (50/50, 60/40 e.g.) between the LP’s and holders.

EDIT: for some reason I am not able to vote on this proposal. Tried on different devices but that does not solve the issue. Help will be much appreciated!

1 Like

It is not up for vote yet I guess. just to gain community interest. The % of rewards/distribution could be copied from Switcheo " Demex" they have a great working model with all details thought through. No need to invent the bicycle. It is the Switcheo team who built the Zilswap after all…

2 Likes

Any help with refining this proposal is welcome and appreciated

1 Like

I see. Thanks for your explanation.

I think this is a good Proposal to create a better incentive for the zwap token.
What if the minimum liquidity is also increased from 500k to 5m ZIL in order to qualify for zwap rewards? That would give a higher APR for the Zwap LPers.
Please correct if I’m wrong.

2 Likes

I think that would be a good idea. At the moment, small tokens are able to recieve LP rewards too easily imo and ever since the zwap/zil pool rewards got reduced it has not been attractive for new people to enter.

A higher APR will contribute to more people entering LPs which will increase the usage and therefore valuation of $ZWAP.

2 Likes

yes, small pools are entering super easy and then ditching the rewards away, we need to make it more challenging for small tokens to get compensated, so they will value those rewards more.

2 Likes

This is perhaps the best of the recent proposals. If there are successful LP rewards on other exchanges put out by Switcheo then why wouldn’t they just reproduce the same type of reward equations in ZILSwap?

2 Likes