Considerations for xOpenX
- 1.Change initial mint ratio from 1:1 to 3:1.
- 2.Commit a percentage of OpenX inflation to OpenXBar.
- 3.Create a six-month lock for the tokens, incentivize users to do so.
- 7.Following (6), create incentives exclusive to the wrapped token.
- 8.Following (7), create market buy pressure on the wrapped token.
- 9.Automate (8).
- 10.Offset emissions in addition to (6) and (7) to ensure (3) is sufficiently incentivized.
- 11.Allow time and math to do the business of (8) and (9)
- 12.Educate arbitrageurs. Performing this lock of value is *profitable* for them.
(1) This is to prevent this first entrants in the project from accumulating a massive amount of Governance tokens before sufficient awareness is brought to the project. Starting at a 1:1 ratio while providing emissions to a small pool would make the mint ratio exponential too quickly.
(4) Pools that offset emissions are most needed for the Liquid Bridge. Multiple pools on multiple exchanges will also keep arbitrageurs busy. We have taken advantage of the latest Defi innovation (Velodrome, a Solidly fork) to be transformed into a sustainable project to offset our earliest emissions and create awareness for the project. Our pairings on VELO indicate the strategies:
Assuming no startup capital, it is best to err on the side of (8) offsetting >100% of early emissions. The niche found in the market is of little consequence to pairing, incentivizing, and compounding the resulting value described here, but a total collapse in liquidity is almost impossible to remedy.