Velodrome’s Proposal to Increase Liquidity for STG Hub on Optimism

02/27/2023 03:26 • Metaverse Matters • 151 views

It is reported that Velodrome, the AMM agreement on Optimism, launched the proposal of Make Velodrome the STG Hubon Optimism on Commonwealth to increase the liquidity of Stargate on Optimism. The proposal proposes that Stargate, based on the cross-chain liquidity agreement of LayerZero, transfer $1.5 million of POL (the liquidity owned by the agreement) from UniswapLP pool to Velodrome and bribe STG-USDC pool. Velodrome will match 40% of Stargate’s bribes (bribes) according to the Tourde OP incentive plan, which can have more than four times the impact on STG-USDC’s liquidity incentive Chans.

Velodrome community proposed Stargate to transfer $1.5 million POL to Velodrome

Analysis based on this information:

Velodrome, the automated market maker (AMM) agreement on Optimism, has proposed to make Velodrome the STG Hub on Optimism Commonwealth in order to enhance the liquidity of Stargate on Optimism. According to the proposal, Stargate, using LayerZero’s cross-chain liquidity agreement, will transfer $1.5 million of POL, the liquidity owned by the agreement, from the UniswapLP pool to Velodrome and bribe the STG-USDC pool. Velodrome will match 40% of Stargate’s bribes according to the Tourde OP incentive plan. This strategy will have more than four times the impact on the liquidity incentive channels for STG-USDC.

This proposal suggests that Velodrome is positioning itself as a key player in the STG Hub on Optimism Commonwealth. By increasing the liquidity of Stargate on Optimism, Velodrome aims to create a flourishing ecosystem that attracts more liquidity providers and traders, thereby enhancing STG’s value proposition. By engaging Stargate in a partnership that benefits both parties, Velodrome seeks to create a symbiotic relationship that will foster growth for both entities.

The use of LayerZero’s cross-chain liquidity agreement is critical to the success of this proposal. It enables Stargate to transfer its liquidity across different bridges, resulting in optimized liquidity provision across the entire network. By utilizing this technology, Velodrome will create a seamless and unified liquidity environment, allowing for a more efficient trading experience.

The Tourde OP incentive plan is another essential aspect of Velodrome’s proposal. By matching 40% of STG-USDC’s bribes, Velodrome will create a strong incentive structure that rewards liquidity providers and traders. This incentive plan is expected to have more than four times the impact on liquidity incentive channels, which would mean a significant increase in trading volume for STG-USDC.

In conclusion, Velodrome’s proposal to make Velodrome the STG Hub on Optimism Commonwealth is a strategic move that aims to increase the liquidity of Stargate on Optimism. By leveraging the cross-chain liquidity agreement of LayerZero and the Tourde OP incentive plan, Velodrome hopes to create a vibrant and thriving ecosystem that attracts more liquidity providers and traders. This proposal has the potential to transform the STG Hub on Optimism Commonwealth into a premier trading destination.

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Velodrome’s Proposal to Increase Liquidity for STG Hub on Optimism

Velodrome community proposed Stargate to transfer $1.5 million POL to Velodrome

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