Why it's URGENT to change LPs incentives

This is why in my opinion it’s urgent to change LPs incentive and I would love to hear your thoughts on this. So as you guys know LPs earn 0.25% of trading fees on Sushiswap and 0.3% on Uniswap, which make Uniswap more attractive. And as you know traders follow liquidity.

Volume/liquidity ratio as of 26 Sept. 2020:

  • Uniswap >10%
  • Sushiswap <9%
3 Likes

While true (and I am big proponent of dynamic fees as function of trade volume/volume trader rebates), such changes require contract migration. Something that is not done lightly.

Perhaps we should test such proposal on one of the sidechain implementations currently developed (polkadot or similar).

2 Likes