Proposal 30: Increase First v3 Liquidity Mining Reward to 0.45MCB per Block

In Proposal 25, we have decided to allocate 0.15MCB/block (975MCB/day) to liquidity mining during 14-days.

Since we have been tested V3 for several months, V3 performed well in the tests.

I suggest increasing the budget for the 2-week liquidity mining to 0.45MCB/block (about 2925MCB/day), thus 40950MCB in total.

To make MCDEX the best perpetual product, we need 100M liquidity (TVL of AMM). The reasonable target liquidity cost (APY) is about 30%. Thus, the daily liquidity cost is 100M * 30% / 365 = $82k. The current MCB price is around $30, so 2925MCB equals 87k, matching the liquidity cost.

Because the Arbitrum mainnet is still a beta version when launch, so we should launch the mining program when the system is robust enough (e.g., several weeks later). If the MCB price goes up a lot, we should reduce the daily MCB reward to make the daily liquidity cost remain the same level (about $80k). As a result, I suggest granting the Foundation the right to reduce the daily MCB reward if the MCB price is significantly greater than $30 at the beginning of the liquidity mining. But the total budget for the first v3 liquidity mining should be 40950MCB no matter what the MCB price is.

This MCB reward will definitely attract a huge amount of liquidity. And the liquidity will attract traders and volume, which is the key to MCDEX’s success.

I suggest the community discuss this proposal.

Update:

  • Please vote
  • This proposal is appoved.
3 Likes

What if the MCB price drops significantly?

IMO, we should keep the daily reward unchanged in this case.

I am very happy to see that our budget has increased, but I also want to participate in the discussion as soon as possible regarding mcb staking. Any ideas from the team?

I agree. We need to kick off in a more aggressive way.

Totally agree with the proposal. Increase reward is good.

Since the governance has approved this proposal, we have minted the additional 27,300 tokens corresponding to the budget for liquidity mining in the near future.

The transaction hash is 0x506628f41c3f28859700eeacbeb11941f6d1568c162df9f14319fa4783c2bc8e.