Stage 1 - Evaluation of LM rewards

The team decided to provide liquidity mining rewards for the OPIUM-ETH pool.

How did you come to a number of 600k 1INCH tokens?
What is your expectation for the period to break-even? That is, the governance income from the OPIUM-ETH pool adding up to an amount of 600k 1INCH.

1 Like

Consider this as a strategic step first of all. I can clarify what 1inch is achieving with this OPIUM liquidity mining program:

  1. We consider Opium Network as one of the leading derivatives platform in DeFi. The partnership seems very promising for both 1inch and Opium projects.
  2. 1inch Liquidity Protocol took the leading and even dominant position regarding the OPIUM token liquidity. It is the only place to trade OPIUM token right now.

Your question was about short-term profit extraction with pool fees. I agree protocol will not extract such an amount of fees from this pool to compensate farming. But I believe we are achieving much more far-term leadership in DeFi achieving targets above.

For me personally, i don’t really like the new OPIUM-ETH farming program, because i don’t have OPIUM so i can’t farm it .
For 1inch, as K06a said, i think it is a good strategy for 1inch, bring a long-term benefit for 1inch, i agree that is a good thing. so i choose support.

Agree w/ Anton here this move, and moves like it are about increasing flow to 1inch and its protocols. We’re here to create lasting value, and a great way to do that is by helping other protocols succeed and aligning 1inch with them such that 1inch grows when they grow.

1inch is arming the rebels.

@k06a Thanks for taking the time to answer my question.

Is there any further collaboration except for providing the pool?

I was talking about the pool fees yes (not necessarily short term) as I’m not aware about other benefits to 1INCH token holders. Happy to be proven wrong here.

My question is mainly “How could one go about modeling the reward amount that should be given?”

@jkol @Alice
Clearly it’s a “good thing”, it’s obvious that it would increase order flow to 1INCH.
But why not reward 1.2M, or 150k. 150k would give you the option to do 4 partnerships…

We computed how much they could give and how much should give 1inch - we gave 5 times less than any other pool which currently have farming. Keep in mind Opium farming reward is counted in Opium token, this means their APY do not depends on token price. I see their farming reward increased 6x in price since yesterday.

Regrading the further collaborations 1inch is exploring opportunities to allow own users hedge some risks. We are working in this direction, hope to have something concrete in a few months.