#24 Weekly Liquidity Mining Incentives for cSwap pools (Phase 23)

cSwap Discussion
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Overview:

cSwap DEX has been launched on the Mainnet. With strong frameworks, good mechanisms, and a robust build, a good but healthy incentive system is imperative for the growth of the DEX. Keeping this in mind, we open the discussion to the community on an upcoming proposal to start the next phase of liquidity incentives on cSwap DEX by allocating 49,021 CMDX and 205,301 Harbor for 7 days - to be distributed as per the model for Liquidity rewards for CMDX and Harbor. These rewards will start when the current reward phase ends. From this week onwards, CMST pools will be receiving Harbo rewards.

Two Ranged pools, USDC.axl/CMDX, and USDC.grv/CMST, will receive dual incentives.

The Master pool will receive around 50% of the total CMDX incentives allocated for the phase. The other 50% will be distributed equally amongst the Child pools as external incentives. From the 50% distributed for Child pools, 10% will be allocated to the Ranged pool category.

Let’s have a quick look at the rewards mechanism before proceeding further:

There are two types of pools on cSwap DEX: Master Pool and Child Pool. Master Pool would be used on cSwap and other apps as a prerequisite for earning token incentives.

cSwap has two incentive distribution parameters; the ‘Master Pool/Child Pool Rewards System’ mechanism and the ‘External Incentives’ mechanism.

There are multiple combinations for the rewards mechanics. Still, in a nutshell, any liquidity provider will earn maximum rewards only if they provide liquidity in both the master pool and one or more of the child pools. A better understanding of the reward mechanism can be gained from cSwap docs.

The breakup of rewards for each pool is as follows:

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Note: Rewards are in $CMDX and $HARBOR tokens.

As the protocol has now reached a mature stage, the current incentive structure will be optimized based on discussions and consensus within the community. We will continue to monitor and evaluate the effectiveness of the new incentive system to ensure its alignment with the growth and sustainability goals of cSwap DEX. Your feedback and input are highly valued as we strive to maintain a thriving and robust ecosystem for our community.

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I believe it’s time to reconsider the current incentives model. I would like to propose a shift in focus towards building liquidity for selected pools, rather than distributing incentives to pools that seemingly offer minimal benefits.

Specifically, I recommend discontinuing the practice of incentivizing certain pools with daily rewards ranging from $2 to $5, without any known substantial benefit. Instead, let’s redirect those incentives to the selected pools that have the potential to enhance liquidity and promote a more robust trading environment.

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Thank you for your thoughtful suggestion. As you may already be aware, we’re on the brink of launching cSwap v2. While I cannot give specific details at this point, I can assure you that we are reassessing our incentive structure with an aim to optimize it further.

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It might also be interesting to find a way where you can get additional incentives if you used multiple of the Comdex tools combined.

So with an active CMST position on Harbor pooled via cSwap gives you a bonus. Or something alike.

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