The purpose of the discussion is to reach consensus on next steps. The rewards will eventually end, and as a DAO we have the options @DeanMachine has shared above.
Is the current LP pool becoming more liquid with the existing rewards?
The overall trend shows a general declining trend in the USDC side and increase in the GRAPE side. To a great extent farming through Tulip has helped make the pool illiquid.
Although Grape is not a Defi protocol, let’s look at what Step Finance has done and perhaps take some lessons on what hasn’t worked for them.
With AMM’s gradually transitioning to more efficient concentrated liquidity pools the need for unproductive liquidity pools will be declining over time. Step finance was not shy to publicly admit that farming was not a good acquisition vehicle for new users on the platform.
They initially stopped the Fushion pool farm early (last year) STEP Updated Emission Schedule. TLDR: -98% less emissions weekly for… | by Step Finance | Medium and then completely sunset
there own AMM’s with a pretty good expiation here → Step Update #8. gm Steppers and its time again for… | by Step Finance | Medium
Mango markets currently has a much smaller LP pool on Raydium with no rewards
Mango also has an active market maker on chain to make sure there is always enough liquidity to make trades on both sides, but is also a much larger protocol with presence on a centralized exchange. If the DAO believes Grape needs am active market maker on chain, this could be a future proposal.
With Grape focusing on reputation and partnerships with other protocols, it would be beneficial to align incentives with other protocols with shared LP pools, and bounties created in these shared pools. This model of cooperation is something which we can push as a DAO. We don’t need to ask for permission to create these pools from the other protocols.
Solana is showing strength in the NFT space, with SOL more actively used as a base currency (by over 16,000 users daily) and Defi protocols losing the lion share of the active user base. It would be beneficial to explore bootstrapping a SOL based, LP pool. As a SPL token, it makes sense our token is natively connected to SOL, ideally we could use mSOL on the one side of the pair so liquidity providers are never losing the staking opprtunities of holding SOL.