[1IP-1] 1inch Trading Incentives v1.0

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  • I am in favor of this proposal
  • Against the change

0 voters

Stage 1 Post

Summary

  • Introducing Exclusive Trading Incentives - Discounts , Swap Fee & Slippage Subsidies

Abstract

  1. Platform Fees Reduction for those who are staking 1inch in the DAO proportional to the amount of tokens that have been staked.

  2. Platform Fees Reduction for Achieving Certain Personal Total Trading Volume + Trading milestones on 1inch DEX

Motivation

The Feature is used by Many Centralized Exchanges like Binance etc. But when it comes to DEX there’s not Much Competition .

1inch DEX on other Hand is one of the Best DEX out there & can take advantage of Such Implementation which will help the Project to move in new directions & Compete against Centralized Exchanges & with other DEX’es as well .

Specification

  1. Platform Fees Reduction for those who are staking 1inch in the DAO proportional to the amount of tokens that have been staked. [For 1inch Stakers]
    Note: The exact ratio can be voted on

Specific example for a 1:1 fee reduction for 1inch staked:

Anton stakes 2000 1inch tokens in the DAO
1inch price = $5
2000 * $5 = $10,000

This means that Anton has a 10% fee* reduction on trades >= $10,000 in value.

  1. Platform Fees Reduction for Achieving a Certain Personal Total Trading Volume + Trading Milestones on 1inch DEX proportional w.r.t to the 24hr Volume on 1inch DEX .[For NON 1inch Stakers ]
    Note: The exact ratio can be voted on

Trading Milestones will be Dynamic & will depend on the Total Volume Being Traded on 1inch in 24hrs
& also on Daily/Weekly/Monthly Trading Frequency of the user .

Note -

  • Fee Reduction %age is Dynamic & Will increase with the increased Trading Volume of user .

  • Fee Reductions will not be Permanent & will start resetting/decreasing gradually once the user completely Stops doing trades on 1inch DEX after a certain period of time .

[ Optional ] Discount Generation -

  • Setting up a Separate Discount Funding Contract [DFC]
  • Split Referral Rewards & Allocate %age of those Funds that will go to DFC
  • Refilling of DFC on Weekly/Daily Basis
  • Distributing Certain %age of Discounts & Cashbacks out of DFC based on most frequent & most Volume traded users over the Leaderboard .

Benefits

  1. Offers another functionality to the 1inch token.
  2. A new benefit of 1inch token for the user of the platform instead of just those who are governing the platform.
  3. Offers long term price stability due to locking mechanism
  4. New attraction to the 1inch platform as an even cheaper way to trade
  5. More Trading Volume Surge will benefit 1inch Stakers in DAO by providing APY boost as Volume Surges .
  6. More Participation in Governance as more people holding 1inch Tokens

Drawbacks

:warning: Sam buys $1,000,000 USDC worth of 1inch tokens

stakes 1inch in DAO
makes many trades quickly to take advantage of fee reduction >= $1,000,000
un-stakes 1inch
sells $1,000,000 USDC worth of 1inch tokens

Possible Solution

2 Choices -

  • Lock - in : Those who want to take advantage of the fee reduction from staking 1inch in the DAO need to lock in their tokens for a certain time period .

    1. Hard Lock - in : Tokens unlocks only after full period ends .
    2. Liquid Lock - in : Provides flexibility & Tokens Unlock slowly with time .
     Note: The length of time can be voted on
    
  • 1inch LP - If Trader don’t Want to Stake they can also Provide Liquidity to Top 5 1inch Liq. Pools

:warning: Trading Useless Shitcoins for Fee Reduction

Possible Solution

Granting Fee Reduction on Approved Pools & Tokens at 1st & then Gradually opening it to other well known tokens too by Voting etc .

:warning: Top $1INCH holders may have more advantages when collecting Trading Discount than others .

Possible Solution

If you collect discount more than 10% of current DFC allocation , 30% of it will be used to buy back $1INCH at the market price & Redistribute them immediately to Governance Stakers etc. . This feature helps deflate the supply and increase the price of $1INCH for long-term $1INCH holders.

2 Likes

Do we vote with 1 inch token?

1 Like

is it means all $10,000 in value treades are free?

1 Like

No . You’ll only use your 1INCH in Stage - 3 Voting .

Yes that’s the Idea . The Fee Reduction Triggers once you attain this Trading Volume Amount Collectively .

1 Like

Do we know the profit of 1 inch platform now? Can they support this idea?

1 Like

Well This is in the Best Interest for 1inch users comprised of both stakers & traders , so Yes !

If it’s a $100000 deal, will people trade $10000 10 times? Because it’s free $10000 once

1 Like

We can give discount according to the proportion of pledge,not token price

1 Like

I Intentionally Connected it with 1inch Token price so that 1inch Token Holders can benefit at 1st

If our 1inch releases a governance token, it may solve all this

1 Like
  1. Swap fee is pay to Ethereum miner , 1inch get nothing about it . So where the money come from to make a “Discount “ for Swap Fee .

  2. Positive Slippage is going collected for staking reward . If you re going to take reward from here to make discount , this is doesn’t make sense .

2 Likes

Current APY on Both BSC & ETH have shown that With Surge in Trading Volumes Staking Rewards collection from weekly Buyback also increase . 1inch Already Provides best Rates all Across other Chains but Providing a solution for frequent traders & whales will increase it further .

  • Setting up a Separate Discount Funding Contract [DFC]
  • Split Referral Rewards & Allot %age of it that will go to DFC
  • Distribute Certain %age of Discounts & Cashbacks out of DFC based on most frequent & most Volume traded users over the Leaderboard .

This will need Tweaking in Aggregation Protocol for Cashbacks . Surely this is not going to be the only Method but we can start step by step & can do changes even after implementation

By Splitting Ref Rewards under Aggregation Protocol

Don’t think too much. Start voting first. The first time is not perfect.
i’m back for you~

1 Like

I actually like this Active discussion . It helps in Rectifying the Bad Points Which in turn makes it more ROBUST & Beautiful for further implementation :slightly_smiling_face:

1 Like

We need to know how the team works together on the proposal

1 Like

If this Proposal Approves then it make sense to try out the feature on testnet before rolling out on mainnet

yes,i think most of 1inch community want it

1 Like

There were more features I thought of , that I really wanted to add into this Proposal but it would get pretty long or may be a bit tiresome or hectic to achieve . So , I thought that it would be better if we should 1st focus on building 1st layer of this proposal & when the Base Layer is complete & will be running fine , we can put other changes/iteration into it afterwards :grinning:

Yes,first proposal is fine,let’s wating more people vote for it,and do the Stage-3

1 Like