(Phase 1) UIP-5 Using xToken Terminal to re-enable LP Rewards

This proposal will outline a re-introduction for incentives to liquidity providers of the $UBI token.

The $UBI liquidity mining (LM) rewards ended on Uniswap V2 for the UBI-DAI and UBI-ETH pools in March 2022, and the next iteration of incentives for $UBI has yet to be decided upon. Another DAO member had posted a phase-1 proposal in response to this ([Phase 1] UIP-4: Re-enable LP rewards) where they suggested that LP rewards be re-enabled.

For the next rewards program, we are putting forward our capital markets platform, xToken Terminal, as a service provider for the next phase of $UBI liquidity incentives. Terminal allows projects to deploy a highly configurable Uni V3 LM program in a matter of minutes, no dev work or technical expertise required for the DAO or LPs. Terminal is deployed on Ethereum, Polygon, Optimism and Arbitrum, allowing the DAO to select the network that best fits current needs.

Since UBI DAO liquidity providers are already familiar with Uniswap V2, moving liquidity onto Uniswap V3 for the next round of incentives is a natural progression that will facilitate deeper liquidity for the protocol going forward. Additionally, Terminal provides a V2-like experience, abstracting many of the complexities of Uniswap V3.

Linking to the docs for Terminal here for those looking for more insight into how the platform works. With that, we invite comments from the community and look forward to feedback!

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This looks like a good idea!

The first question that comes to mind is: in which network it makes more sense to run this liquidity mining program on?

Also: if the program increases circulating supply, but no significant utility is built during the program, it might be detrimental to the token price and the objective of the program.

In other words: liquidity will be built, LP’ers will dump rewards, then leave the pool.

We have UBI v2 on its way that opens the door to more utility being a one of a kind token with delegated streaming and we are seeing new dapps like prode.eth and collections that burn it already live on mainnets. No doubt we need more stuff but I’m aware of a couple of key projects that are strongly building with UBI.

This kind of arguments belong to the chicken and egg category… We need all things to happen. Wish you show more support to UBI rather than constant skepticism @0xjean.eth.

Someone needs to raise these questions, to understand when is the right time to launch these programs. It would be very helpful if you raised this point as well.

Doing some rough calculations on what should be the expected added utility in terms of $$$ for each of the points you mentioned for the next couple of months would go a long way.

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Fair enough, I see your point with more clarity now.

I’m actively working on that and preparing a proposal to drastically improve the utility of UBI and build organic liquidity incentives around it but it’s still a draft. We can talk about it privately if you want, all feedback helps a lot at this drafting stage.

As you can see by my latest UBI Governor actions and UIP’s, strengthening UBI is my top priority right now and I certainly need all the help we can get.