I’m very excited to see the calculator for the SOV/rBTC liquidity pool is live. I had bounced around some ideas on Twitter regarding a possible NFT drop to SOV/rBTC V1 liquidity pool stakers. I think it would be really cool to commemorate the very first SOV market makers with a super rare NFT Drop. Just something cool to continue to build the community sentiment and reward the risk takers.
I staked half my SOV from the Origin presale in the Bitocracy for a year, because I don’t want to even be tempted to sell it or do anything else with it. I don’t want to risk that SOV in any way whatsoever. So, I playing it safe with half of my SOV. But with the other half of the SOV I received for funding the Origin presale, I decided to be a contributing member of the community and take a risk with the SOV/rBTC V1 liquidity pair.
I know all about Impermanent Loss and I’m the biggest SOV bull you could imagine, so forfeiting some of my SOV to impermanent was something that I was personally willing to do because I want to help grow the platform and we all already basically got a 10x return on our Origin investment, so I felt like contributing to the project by helping to make the early market for SOV. That meant that I had to come up with the other 50% of my stake in rBTC. So I also moved another large sum onto the network and platform in order to stake the SOV/rBTC pair.
Now that I’m able to see my projected Loot Drop rewards, I’m pretty hopeful that they will offset most or all of the Impermanent Loss I may experience in the pool. I suppose we’ll know more about that in the coming week or so when we hopefully have a representation of the value of our SOV/rBTC staking positions.
In any event, I just wanted to suggest that we get the Sovryn NFT train running ASAP. Now that we are going to be making the big debut on Uniswap, it would be cool to drop the OG LPs a rare NFT. Anyone have any cool ideas for what sort of NFT image we could drop? I want the space badger on there. Maybe he’s staking a Sovryn flag on the moon or something. But it would be cool if it was really unique in some way… like if it had a gold or platinum patina so as to appear as a solid brick of bullion.
If it is possible to mint these NFTs so that they may gain some functionality on the RSK network later that would be ideal. I want us to pioneer NFUTs (Non-Fungible Utility Tokens). So it would be awesome if we could mint these V1 SOV liquidity provider NFTs so that they can provide some future benefit on the platform… like reduced trading fees to anyone holding the NFT. That’s the sort of thing that will bring value to the NFTs, provide an epic reward to community members (even above and beyond the 75k SOV lootdrop incentive).
We had a lot more liquidity in the SOV/rBTC pool than expected. That’s pretty awesome, but it also means that the reward is spread a little more thin and may not cover as much of the IL risk as possible. I’m really excited about participating in the eSOV Uniswap ethereum bridge liquidity pool. And I can see that the developers and community are considering structuring the rewards to cover the risk of IL. This is the sort of community building that makes the best projects. I love this community. So, I think we can push the limits with respect to innovation and creative implementation of NFTs and liquidity provider incentivization. I don’t know how to draft a formal SIP, but I wanted to get the conversation started over here. I look forward to hearing your thoughts! Stay Sovryn!