Gas Rebate For High Volume Traders

Summary

Gas rebate for high volume traders. Reward X sushi for Y TVT(Total Value Traded) paid out weekly(?) X and Y values up for discussion, implementation up for discussion.

Abstract

Encouraging traders to trade on sushiswap, via a gas rebate(paid out in sushi) will serve to both increase revenue for SLPs as well as increase the revenue for sushi holders

Motivation

There are two philosophies. You can create ‘value adds’ for the sushi token(through higher xSushi APY/valuation), thus incentivizing staking as an LP(to farm sushi), encouraging better prices for trades with lower slippage, more fees yada yada… The other philosophy is to simply encourage traders to use sushiswap,which in turn directly benefit both LP’s and xsushi holders through higher trade volume.

Specification

Would only be applicable to pools on the menu, calculated weekly. This could easily be automated and then sent out manually, but obviously full automation is optimal.

For

This proposal sounds cool

Against

This proposal needs work

  • For
  • Against

0 voters

Kraken Futures used to have a peculiar setup for rewarding the trading volume generation.
They scored every trader on a weekly basis and redistributed 30% of the fees collected to them every friday, based on rank. The program did result into noticeable volume growth and was called a success, although it will be discontinued starting next month.

The problem with having a reward paid with a token is trying to balance the selling pressure it creates against the supposed value it would bring.

With all the locking and slashing of sushi rewards that’s been going on recently, how exactly are we going to afford reimbursing gas fees?

I would imagine that this offer wouldn’t purely increase selling pressure. As if it did, it would simply create arbitrage opportunities between sushiswap and other markets. If it were up to me to design, I wouldn’t fund the rebate through the fees, rather I’d fund it with a small percent from the dev stream. The idea was definitely inspired by other CEX’s running trader competitions/giveaway type events in the past, seemed to be a pretty good way to attract traders. It’s interesting that Kraken did not have a threshold, it would be cool to implement a similar function on sushiswap. I’m unsure of how implementation would work though, may be something that requires a full contract upgrade to add on which would probably put the idea on the back burner.

1 Like

I think looking at the UNI contract and identifying a min vol threshold that we could use as a qualifier would help