AIP 60: Liquidity Mining on Unipilot

[Koploseus]

Summary

Increase AST liquidity on uniswap v3 and ensure a minimum token supply Set up liquidity mining program with Unipilot (based on AIP45) Uniswap v3 pool to be seeded with 100K AST and an equivalent amount in ETH Additional 200K AST will be allocated to the mining rewards with 10% being cross deployed to the PILOT/ETH pool. Unipilot will contribute an equivalent amount of PILOT to the AST/ETH pool

Unipilot presentation

Unipilot saves liquidity providers from the hassle of manual oversight through automated liquidity optimization and management.

• The aim of the Pilot protocol is to ensure maximum capital efficiency by allocating the right mix of capital to each of Uniswap’s liquidity pools existing on its platform.
• If price fluctuates and capital goes out of the price range it does not earn any fees. Unipilot solves this problem by allocating capital to the narrowest price range to earn the maximum amount of fees.
• Apart from offering optimized liquidity positions, the Pilot protocol also auto-rebalances liquidity in appropriate price ranges to cater to the changing market prices.
• In addition to that, the transaction cost involved with readjusting liquidity is also disbursed by the protocol so liquidity providers don’t have to worry about the increasing gas costs on Ethereum.

More info on : https://unipilot.io/

Specification

• Create initial uni v3 LP for AST/WETH pair (100K AST / equiv amount in ETH)
• 180K AST ($30K) + xxx PILOT ($3K) will be used as Liquidity Mining rewards for people who stake AST/WETH LP tokens in Unipilot
• 20K AST will be cross deployed to PILOT/WETH pool
• Initial mining program to run for 1 month

Rationale

AIP 45 (here) proposes to increase LP rewards for those who provide some liquidity on Uniswap.However the actual LP is still on Uniswap v2 and the liquidity there is only around $500K. To encourage more DeFi natives to join AirSwap and build up our status in the DeFi ecosystem, we hope to increase AST liquidity on decentralized platforms such as Uniswap v3.

Managing LPs on Uniswap v3 is complicated as it requires spending gas fees to recalibrate the price range. We propose to use an AMM Manager like UniPilot to help manage the range on the Uniswap v3 Liquidity Pool.

Assuming we manage to attract $1M worth of AST liquidity on Uniswap v3 using the mining program in this initial 1 month pilot trial, this would be equivalent to a 30-40% APR generated for Liquidity Providers.

If the pilot program goes well, we could also deposit more tokens into the LP and channel the LP fees back into our rewards pool as an additional source of revenue for the AirSwap DAO.

Copyright

All proposals are public domain via CC0