RE: Bringing the ultimate Defi to Hive-Engine???
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If you are going this way, and I highly recommend you do, because "pooling" is almost revolutionary and I don't see it going away. Sushiswap will most likely stay as well.
I would like to have pooling and swap on Hive and Hive engine. It would also be nice to have Hive Engine a bit more decentralized and secure.
About incentives.
A regular LPs fees on Uniswap is 0.3% per trade. But since this is extremely important I recommend to build an incentives distribution bot/platform.
Make incentives in Hive and the token. Token owner want to give incentives in Hive and token A. He deposit them in the platform and make a setup for distribution over the next period. Liquid Providers then jump the pool and farm the incentives. Example like this are starting to pop up on ETH now as well.
In this way there will already be an easy to use platform so this can grow fast.
You know, my annualized ROI on powered up HIVE is above 15%. Not bad considering just how low risk it is, wouldn't you say? And at current prices, it's like 99% chance of the price of HIVE going up. HIVE is a no-brainer 100-1,000x candidate. To have your money invested in something like that, and be making >15% a year while you wait, ain't that bad.
That's the opportunity cost for anyone considering extremely high risk "liquidity pooling".
Which one would you choose?
True. Hive has one of the best apy in the industry all things considerd.
Plus you actualy use it, conect and discuss with people and maybe learn something on the way :) That can be very valubale as well!
That being said, we can still play around, explore new things and keep our eyes on Hive at the same time.
Its also most likley that with this defi thing if you dont know exactly what are you doing you will loose.
Ill keep my game on Hive and play around with defi with small ammounts that I'm comfortable to loose.
The one where my funds are not locked for 3 months and I can instantly withdraw them :p
It all depends on your time horizon. 😉
Thing is, it's self balancing. Return is liquidity/fees, so if people decide it's not worth it, returns go up until people decide it is.
The other part is that hive engine is already powered by a 0% apy liquidity pool. It's called limit orders. These are the current incentive to leave assets in the market, and people obviously do respond to the incentive. "Market Making", which LPs are crypto's attempt to decentralize, is the incentive to "close the gap" between the buy and sell limits. There are already groups working to add limits for uniswap, and those will increase functionality and liquidity, and hive engine would be simply doing it from the other direction. We can assume some of those limit orders are people playing the market, and they would rather just play both sides as a market maker.
There are also real buyers and sellers, in fact, lots of them.
Not so sure closing the spread is such an urgent need, to be honest, but, whatever.
Nicely said though - it's obvious you have more background knowledge on this than most who are on the hype. Hopefully you'll pass some of that on where it'll do some good.
Thanks for the comment, and don't get burned playing with fire.
I agree that the incentives have to be organized and your idea is quite good.
Another (maybe even better;) choice would be to change the concept of HE and apply a trading-fee (for the pools at least) and that trading fee will be used for the incentive (like on Uniswap).
In addition: If someone transfers token into the pool - let's say after a week in the pool or after a trade is performed - a part of the already paid 1% deposit fee (maybe 0.5%) can be paid back as an incentive to place the tokens in a pool after the deposit.