SPORTS Token Fund Proposal: SPORTS:HIVE Diesel Pool Liquidity Provider Rewards
This is a proposal to provide 280,000 SPORTS per day as liquidity rewards for the SPORTS:SWAP.HIVE Diesel Pool. These rewards help encourage users to provide liquidity for swaps between the two assets.
The 280,000 SPORTS will be distributed to Distribution Contract #30 for 'Paying out SPORTS:SWAP.HIVE liquidity providers.' These will be received daily and distributed over 365 days of payout after each deposit.
To vote to approve this proposal please visit: https://www.sportstalksocial.com/proposals
23.83586082 BEE
That's a very good proposal. I just want to ask if the sports will be provided by individual or Sportstalk funds.
I'm going to explain in much more detail in a full post that I'll be finishing up soon. To give the direct answer to the question at hand these funds would be issued daily as new tokens from the DAO and moved into the distribution contract for the LP rewards.
Update: I just published a post I referenced above about what was wrong with the upgrade and how we could change it.
That's a big yes for me ! I'd love to participate in it, I'll just need to get some more Liquid hive for it :')
That's always the problems is finding more funds 😆 Thanks for the support!
Outstanding proposal as always. It’s good to see SPORTS in the DeFi world. Thanks for the good work on the Sports ecosystem.
I just started messing around with the Diesel pools a little bit. I still don't quite understand them so much. I am trying to learn though.
They are definitely an interesting tool! In case this helps you or someone else I figured I'd write a little about how they work here. What happens is that anyone with assets can agree to provide liquidity for these pools so that they can allow for more economic activity using the tokens they are pooling. When they provide liquidity they have to stake each side of the pool they are providing for.
Right now we just have a SPORTS / SWAP.HIVE pool so I'll use those two assets as my reference point but it'd be the same with any other grouping. If I want to provide liquidity I have to have the same amount of each asset. If I have 10,000 SPORTS, I will also need to have 0.8173 SWAP.HIVE to add liquidity.
Now that I've provided liquidity for it anyone else can now trade that position. Say you have 5,000 SPORTS, you could come to the swap side of things and trade your 5,000 SPORTS and get ~.4 SWAP.HIVE. This all happens without a third party so it enables trade even if Hive Engine exchange goes away because the trades are happening inside the pool.
Most pools charge a fee for swaps which is then distributed to the liquidity providers in terms of their pool liquidity %. Hive Engine doesn't actually charge any fees for swaps so they incentivize swaps by Liquidity Pool rewards such as this proposal. When a tribe has LP Rewards it will send an amount to that contract each day which then gets distributed across all the LP providers to reward them for locking up their assets so others could trade against.
Awesome! Thanks for the info. That does help quite a bit!
Sounds reasonable;)
Voted ;)
Hello ! I have a question, why the reward pool for SPORTS:HIVE is wayyyy smaller than what the proposal was been seeking for ?
The proposal is higly voted so I don't understand why it's devided by 17 ?
When the distribution contract creates 280,000 SPORTS it deposits them into Liquidity Provider rewards pool for SWAP.HIVE/SPORTS. That pool is set to accept deposits but distribute them over 365 days. That means that each day, for the next ~330 days, the pool rewards will keep getting bigger until it is fully distributing 280,000 a day itself.
If the token funding contract was not voted anymore then it would still be distributing for the rest of the contract life but only with what it has in it now and not growing.
Ok ! Thank you ! I indeed saw that the rewards are bigger each day ! Thanks for the explanation ;)