Background
- Based on the Tokenlon litepaper, 10,000,000 LON has been set aside for liquidity mining incentives. Liquidity mining started on 24th Dec 2020 and has run for 7 consecutive phases, with 6.8 million LON given out for the two liquidity pools
- Uniswap LON/ETH pool
- Sushiswap LON/USDT pool
- Following TIP 24, the remaining LON has been added to the LON/USDT pool. These funds will be used to ensure liquidity for LON buyback when triggered
- Sushiswap LON/USDT TVL is currently at $5.94 Million, daily trade volume is at $100,000 on average
- The funds are underutilised
- As one of the most active Layer 2 ecosystems as well the Optimistic Rollup solution with the most potential, Tokenlon has launched limit order on Arbitrum. While LON is the governance token of Tokenlon, it is only available on the Ethereum network. To support LON trading on Arbitrum, we will need to create LON liquidity on the Arbitrum network
Goal
- The community to vote on whether LON liquidity pools should be created on Arbitrum. Firstly, this will satisfy the user's trading needs for LON on Arbitrum and lower the trading cost. Secondly, it will give LON additional token utility in the layer 2 ecosystem
Proposal
- Create a LON/USDT liquidity pool on Arbitrum at Sushiswap. This is after assessing the TVL of different projects on Arbitrum as well as the needs of users who want to trade LON using Tokenlon limit order
- We will start with a $200,000 liquidity pool, which can be adjusted depending on the situation in the future
| Token | Source of liquidity | Initial amount |
|---|---|---|
| USDT | L1 LON/USDT pool | 100,000 |
| LON | L1 LON/USDT pool | 1:1 Ratio with USDT |
Action Item
- Withdraw $200,000 LP tokens from the current Sushiswap L1 liquidity pool and redeem LON & USDT. The Tokenlon team will then create a LON/USDT liquidity pool of $200,000 on Sushiswap Arbitrum
Voting Rules
- Only holders of LON, xLON and/or LON LP tokens can vote
Vote Options
- Support
- Reject