Moving from LP Rewards to Data Rewards
–– 26 Oct 2021
Our LP rewards programme has been a big success for a large number of LPs over the last 10 months. We started with a manual process, quickly automated this, and then ran two on-chain programmes using the Uni-swap staking UI.
We now believe the time is right to stop rewarding LPs and move to rewarding early adopters of TAP. Starting with the release of Tapmydata’s Glitch where we will be allocating a similar amount of TAP as enjoyed by LPs to those that mint their Glitch.
This approach is more aligned with our mission and moves away from rewarding a small number of LPs giving everyone an equal opportunity to take part in the ecosystem.
What does this mean for Uniswap liquidity?
We believe Uniswap v3 is now mature and battle tested enough to suggest people move their liquidity there where they can benefit from tighter control over where they allocate their LP and still enjoy the Uniswap fees.
If you are unaware of how Uniswap v3 is different to v2 you can read more here.
In summary, LPs have far greater control over the liquidity they provide and in fact can do one-sided staking.
We (Tapmydata) will be allocating enough liquidity to the v3 pool to ensure swaps can continue without impact. You can view the pool here.
Why the sudden stop?
In short, Gas. If we were to extend the current programme and either shorten the duration or reduce the reward it would be economically unfair to anyone but the largest holders.
We will be looking to introduce an LP programme on Polygon in the near future where Gas is less of an issue.