Proposal: TORN Liquidity mining program with 1inch

Proposal: TORN Liquidity mining program

TLDR

Offer 120k TORN for a liquidity mining campaign for the ETH/TORN pair on the 1inch Liquidity Protocol to last 6 months. Vote now: https://app.tornado.cash

Motivation

An ETH/TORN liquidity campaign on 1inch would help to considerably boost TORN liquidity, which is currently thin, causing, for instance, a more than 2% slippage on a $30k swap.

In addition, the 1inch AMM offers substantial incentives and advantages for liquidity providers. 1inch has resources for major mutual marketing activities. The liquidity mining campaign would be accessible in all 1inch protocols, as well as in the recently released innovative 1inch Wallet.

Specification

The distribution would be set up as follows: offer 120k TORN tokens in a liquidity mining campaign that would last for 6 months. 120k corresponds to roughly 43% of currently available TORN tokens in the treasury.

Target pair: 0x0C722a487876989Af8a05FFf

Campaign duration: 182 days

Reward amount: 120000 TORN tokens

Is this proposal actually live, yet? Doesn’t appear under the Active tab in https://app.tornado.cash/governance

we already have LP incentives on uniswap. We don’t need to add any more incentives for LP

if we were to add incentives to another exchange, i believe sushiswap would be the next option

I do think we need to give 1Inch (@1inchfoundation) credit here because they were actually the first to create an incentivized TORN/ETH pool without us even asking. They gave 1INCH as rewards right when TORN went live that led to some of our first available liquidity

Basically, I believe our community should reciprocate with TORN rewards on a TORN/ETH pool on 1Inch. That said, I do feel that this proposed reward allocation is too much at this point. 43.6% of our current treasury is massive. An alternative way to think about this is it works out to be approximately 22% of our monthly vest for the next 6 months. Also pretty significant.

Open to anyone else’s response or input

I’d think it’d be cool if they make a governance proposal, ready and coded, and we accept or reject it. That would be the first really “decentralized” proposal - not made by the team.

@ethdev yes, perhaps the amount is too much - but then we can reject their proposal, let them come with another one.

Personally, I think that we should prefer to consider Liquidity Pool rewards on an L2 solution when it comes: if Uniswap moves to Optimism, for example.

Or if Tornado Cash expands to Arbitrum, as I think @poma mentioned before, then an incentivized pool could be made on any LPs also on Arbitrum, to drive synergy.

Completely agree @odcpw. A hard coded proposal for us to vote on would be best.

I just assumed because they didn’t hard code the proposal, yet, they were looking for soft consensus feedback in this thread on the terms they’re tentatively considering. But for sure if they want the fastest iteration cycle for the proposal to get approved, that would probably just be done through “continuous” proposal submissions.

Arbitrum LP incentivization is interesting. Not totally familiar with it, actually. Will need to do more research. Thanks for sharing that.