Thank you for your thoughtful comment it is greatly appreciated, and I think you made some great points. Similar to you I have participated in all the farms to date and also want what is best for the entire community. Panda is not my largest holding out of the three tokens, but I would still like to see it succeed.
I understand why you think it would be better to wait until a product launch to incentive more users, and perhaps you are correct - why would people want to farm what appears to be a dying token with no use case? That being said, throughout the entire “Bao Project” the narrative has basically been farming franchise tokens with the promise of indexes and synthetics which can be minted using said tokens in the future. So, these farms are not without purpose. In theory they exist so you can save up a stack to mint synthetic assets with. Unfortunately, these high yield farms tend to attract people who farm and dump for a profit and don’t care about the projects’ goals. This maybe why its better to have a use case for the tokens in place before farming starts, or before “advertising” the project – so I do see your point.
My reasoning in regards to getting panda/rhino/bamboo listed before indexes and synthetics are released are as follows:
It will add some legitimacy to a project in a very “scam heavy” environment, which could incentivize more people to take part in farming panda before and after the launch of products on the franchise.
I think getting more new people to farm panda is a good idea because many of the people currently farming on panda simply come from the bao ecosystem. By increasing the pool weight for some pancake pools this will allow for some newcomers to enjoy high yield farming opportunities before synthetics launch.
If increasing volume and TVL is successful and leads to the listing of our tokens then I would expect the price of panda to increase, which would benefit farmers who wish to mint synthetics using their farmed panda. This may ease the pain for people who suffered heavy IL early on.
I think that answers at least one of your questions, but you had several more which I will do my best to answer as well.
• you stated there may not be very much initial benefit…why do you think this? Perhaps our thinking is more aligned than i realized.
- I think that if the increase in volume for pancakeswap using arbitrage doesn’t help us get listed on coingecko then there will be little initial benefit, other then some new farms with higher rewards. In other words, we may not get any newcomers to the ecosystem. I think the greatest initial benefit would be the addition of new users to the ecosystem because without a community there is no point. I know there is a no advertising or shilling vibe in the bao community, which is good, but more than anything getting listed is just making panda accessible to more people. I don’t think you can even trade panda or rhino on pancakeswap V2. If you didn’t hear about panda through bao it is unlikely you heard of it at all.
• you propose using $150k to create/bolster pancakeswap pools in an effort to stimulate trading volume via arbitrage opportunities…isnt that already present with the current pools? Even if there was a significant abritrage opportunity available and it does stimulate trading volume…shouldnt that volume disappear when the abritrage window has been closed? Once closed volume would stabilize, but now volume would be split between pandaswap and pancakeswap?
- Yes, I believe you are correct. However, I don’t think there is much liquidity in the pancake pools and I also do not think that liquidity has been migrated to pancake V2 yet. It would be nice to actually have our tokens listed on pancakeswap V2. Currently they do not exist on pancake V2 and you need to paste the contract address on V1. I think the point is to have the volume split between pandaswap and pancakeswap in order to get listed because they will not look at pandaswap volume. Hopefully, the initial volume is enough to get listed which should lead to more volume over time.
• Funds used from the treasury…which treasury? I do not know if each franchise has a seperate treasury or if its just one global bao treasury.
- You are right there is only one Bao treasury but according to the tokenomics page (Distribution / Tokenomics - Bao Finance) 70% of the initial 250,000,000 panda preprint will be used for community voted/future incentives. Unfortunately, I did not think of this previously and now I realize that 175,000,000 panda is only worth slightly over 100k at today’s panda prices. Perhaps it is only worth adding liquidity to the current panda and rhino pools and waiting to get bamboo listed until sometime in the future.
• looking at the pnda chart, this has been a farm and dump coin. It is highly likely that this initial $150k injection would face large IL…would community members be comfortable losing a large % to IL (loss of 50% 75% even higher?)?
- Impermanent loss is likely, but if the initial seeding of liquidity serves its purpose is the loss worth it? I don’t know, but it is worth discussing.
Thanks again for your comment - this is the kind of discussion that needs to occur around the panda franchise.