The Liquidity Conundrum

Pickle is one of the token with the one of most liquidity pair on Uniswap, last time I see it it was at 9th place! With a very low market cap, the racio is unproporcional at least

Appreciate the links! I thought I recalled something of the sort being brought up in the past, I’ll have to look into these threads.

On this point I suppose I agree, but Pickle is (at least from what I can tell) one of the few protocols that really only focuses on a single deep pool like you mentioned. Even protocols like Rottenswap whose namesake token serves no real purpose still has a number of pools attached to said token. I’m by no means suggesting we have 20 different Pickle pools but having literally ONE incentivized pool attached to Pickle at this point seems a little odd to me especially given the goal of Pickle Finance which was/is to bring stability back to stablecoins.

Again, I don’t know if what I’m saying makes logistical sense in the long-term. I only got into the magical world of food-money a few months back and I LOVED Pickle’s ultimate goal but as more and more pools are added that only serve to create more Pickle tokens I don’t see how this helps to achieve that goal. Maybe I’m just not looking at it the right way (certainly possible).

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If you take a closer look at Rottenswap you’ll see that (a) ETH-ROT is the only pair that has any volume and (b) the other pairs are total rubbish (ROT-COCK, anyone?). Not sure we should be modelling ourselves on this…

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The overflow from the treasury goes to Pickle stakers. 20% of our income goes to the treasury, so on average the rewards to stakers will be higher. Right now it’s almost 20% because the treasury is full.

I by no means meant to imply that we should model ourselves after Rotten–quite the contrary. Hence why I said “even […] Rottenswap […] has a number of pools attached to said token.” The ROT-BLOODY pool actually is VERY close to the liquidity of the ROT-ETH pool ($420k for BLOODY vs. $490k for ETH) but that’s neither here nor there.

I just think having incentivized pools–especially for Pickle/stablecoin pairs–could help in the long run. I could be totally off-base with that, though.

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Thanks! I was surprised at the low earnings, figured I might have missed something.

So 675K is likely an underestimate, real rewards could be as high as 24.5% of the 15M income.
Assuming an average of 20% of profits where we make 15% on TVL of 100M, that makes $3M annual rewards and we are currently valued at around 7x annual earnings. Sounds about right this time?

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A PICKLE/WBTC pool would be interesting.
It would create incentive to trade, increasing fee rewards for both, as there are always arbitrage opportunities.

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USDT 2.40%
SUSHI-WBTC 3.17%
WBTC 1.46%
3CRV 4.53%
RENBTC 1.43%
USDC 3.75%
yCRV 2.91%
DAI 2.31%
UNI-USDT 4.66%
WETH 1.64%
UNI-USDC 4.66%
CRVREN 1.37%
TUSD 2.11%
UNI-DAI 4.66%
Liquidity 54.26%
UNI-WBTC 4.66%

I’ll post this on a few of the ongoing threads regarding liquidity and PICKLE allocation.
Above is the allocation (currently) Harvest Finance uses and manages to keep a liquidity pool of around $15MM. They’re paying out 15% less in emissions for liquidity than we are and have a 25% higher staking rate than we currently do.

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