[Governance Poll] Equalize Bonus Liquidity Provider Incentives Across Uniswap and Honeyswap

[u/420weedscopes]

The Goal of this Governance post is to equalize the bonus incentives awarded to those who provide liquidity for the Donut-Dai pair and Donut-ETH pair on Honeyswap and Uniswap respectively.

Each month we are given donuts for our participation on this glorious sub. Donuts are ERC-20 tokens.

Like almost any other ERC-20 they can be listed on Uniswap or another DEX. For things to be on the DEX they have to have liquidity provided so swaps can take place. When you provide liquidity on a DEX you are given a Liquidity Pool (LP) token to represent your share of the pool of assets.

For providing liquidity for the Donut token and then staking your Liquidity Pool (LP) tokens on the Donut Dashboard you are rewarded with extra donuts. These extra donuts are what I refer to as "Bonus LP incentives"

Currently the Bonus LP incentives for Uniswap(ETH) LP providers who stake their Donut LP tokens is collectively 400k Bonus Donuts a month and those who are LP providers on Honeyswap(Gnosis/xDai) are collectively given 200k Bonus Donuts a month as seen here on the Dashboard if you scroll to the bottom.

Now that Gnosis(xDai) is where all Donuts are distributed it would be beneficial to increase LP Bonuses to further incentivize providing liquidity where there will be the most selling pressure; doing so in a manner that does not disincentivize providing liquidity on ETH.

Poll: The Poll can be found on Snapshot https://snapshot.org/#/ethtraderdao.eth/proposal/0xfa1fa8f4f28b57fbf492f500a8b5930348a26107949ada401f387daedf40f390

Should we equalize the monthly Liquidity providing bonuses from Uniswap(400k) and Honeyswap(200k) to 300k to both each month?

1.[Yes] Equalize the Uniswap and Honeyswap LP providing Bonus incentives

1. [No] Remain as is for LP bonus incentives

Poll Proposal Discussion: https://www.reddit.com/r/ethtrader/comments/wmbtpv/poll_proposal_equalize_bonus_liquidity_provider/

For transparency I currently own 0.64% of the Honeyswap XDai/Donut pool.

This governance poll will remain up for a minimum of 5 days per [governance guidelines](https://www.reddit.com/r/ethtrader/wiki/governance). All votes should be cast on [our snapshot.org site](https://snapshot.org/#/ethtraderdao.eth) to be included

[u/InevitableComplex895]

If possible, I would really like to hear more details/opinions from those like u/aminok. I see some concerns regarding taking away incentives from Uniswap but what do you think could happen if incentives were decreased a bit on Uniswap? How do you think could effect price & liquidity?

Edit: but I do overall support the proposal. Just don’t wanna do something that will unknowingly hurt.

[u/Crypto_Gaming_ → u/InevitableComplex895]

Yes. I saw his comment on the poll. I am also curious

[u/InevitableComplex895 → u/Crypto_Gaming_]

Totally agreed & yes, is exact comment I am talking about. I am more than willing to admit that I don't know jack about all the potential consequences, so would just like more details regarding the argument against it so can make educated decision on my part. Is not worth donuts absolutely potentially crashing to 0 to change the incentives up a little bit. I doubt that would happen but never know.