TL;DR: LP Providers of TORN/ETH pairs should be allowed to deposit their LP tokens into a new Tornado pool that supports them.


The TORN airdrop is awesome, but due to the nature of the protocol users with larger holdings may be unwilling/unable to batch their tokens together, making it harder to create proposals, vote, and otherwise manage their TORN holdings (because of ephemeral, one-time use wallets that now have TORN). Allowing those users to to be able to combine their TORN holdings would therefore be beneficial, but could lead to de-anonymization if multiple wallets that were unconnected migrate their holdings of TORN together. Lastly, liquidity of TORN/ETH pools is still kind of low, but growing (Uni v2 Pool). Incentivizing further liquidity is a plus.

By allowing LP shares to be deposited in Tornado (similar to ETH or DAI), users can privately collect their holdings together through supplying liquidity for TORN (which is an additional benefit for TORN holders).

I suggest 0.1/1/10/100 LP token denominations, based on how it’s currently trading (seems like $250-$1000 range is likely, putting it on par with ETH). It should not be an issue with de-anonymizing via price as all LP shareholders have the same price, although there is potentially some correlations to be had between airdrop size and price. I have not thought this out thoroughly, but worth investigating.

Lastly, I think this would be a good candidate for incentivizing via “anonymity mining” as it has the indirect benefit of “liquidity mining” as well, and better liquidity for TORN should help engender it’s adoption.

I do not personally have enough TORN to propose this officially, so someone else will have to do that if this seems like a good idea to them.

Link to Anonymity Mining program discussion: