Temperature Checking: Transaction mining program

Temperature Check
#1

Transaction Mining Program

To build transaction volume on WhiteSwap , I propose that a transaction mining program be utilized. This we increase transaction volume and use dramatically , which is essential for the success of a DEX.

The transaction mining program will distribute WSE tokens as rewards on a weekly basis. The rewards are calculated based on two factors:

• A users trading volume from selected pairs (rank factor)

• The amount and length of staking of WSE tokens (weight factor)

In essence the more a user trades, the more WSE he or she get from the weekly rewards pool. The amount and how long one stake WSE, the heavier weight you get to multiple rewards.

Suggested initial pairs:

• DAI-ETH

• ETH-USDT

• WBTC-ETH

• DAI-USDC

• ETH-USDT

• WSE-ETH

• WSE-USDT

Rewards Calculation

In summary, reward distribution is decided by trading rank, staking amount, and staking duration.

• Trading rank: higher trading volume in a round gives higher trading rank, e.g., user A/B/C’s trading volume are 10/100/1000 USD, their trading rank are 1/2/3.

• Staking amount: the amount of token in a staking pool, e.g., user A/B/C stakes 100/50/20 WSE in the staking pool

• Staking duration: the duration of token in a staking contract, e.g., user A/B/C’s staking duration is 46500 blocks ~= 1 week.

• Share of rewards = (trading_rank * staking_amount * staking_duration)

What do you guys think?

1 Like
#2

Hi @justjazzy12,

I like the idea. Anything that could onboard users and incentivize participation at this stage is great. It seems like this could act as an extended fee discount, where not only are you getting the standard discount from holding WSE, but extra rewards for staking it.

My only concern would be preventing the dilution of the value of WSE, but this would simply come down to the reward allocation.

#3

I’m not quite catching the idea of calculating trading rank. How are you gonna do this? I think we should better get few pairs of tokens and not everything we have on WhiteSwap. Can you please explain the mechanics of calculating every part of your proposal?

#4

reward distribution is decided by trading rank, staking amount, and staking duration.

• Trading rank: higher trading volume in a round gives higher trading rank, e.g., user X/Y/Z’s trading volume are 10/100/1000 USD, their trading rank are 1/2/3.

• Staking amount: the amount of token in a staking contract, e.g., user X/Y/Z stakes 100/50/20 WSE in the staking contract

• Staking duration: the duration of token in a staking contract, e.g., user A/B/C’s staking duration is 46500 blocks ~= 1 week.

• Share of rewards = (trading_rank * staking_amount * staking_duration)

Hope this helps

#5

We can definitely reduce the reward amount over a longer period

#6

So, to get trading rank we need to calculate every token in ETH and then convert in USD? Then we need to save the data and at the end of the month to calculate rewards. Isn’t it too many transactions? I think we can do rewards to appreciate the time of stacking but not with trading.

#7

Yes , but this process could be simplified via use of a calculation script. The rational behind counting trading volume is to reward and Increase use of the DEX. Liquidity mining alone does not increase use. :slightly_smiling_face:

#8

To implement smth you need a fully written down flow. What’s the script’s formula? How the volume in USDT USDC ETH is calculated? What is the calculation script you are talking about? How much gas it needs?

#9

I was thinking that the finer details be left to the team. But suggestions are welcome.

#10

The team can do the code i guess, but you should provide more details of how it should work and implement

#11

reward distribution is decided by trading rank, staking amount and staking duration

• trading_rank - higher trading volume in a round gives higher trading rank, e.g., user A/B/C’s trading volume are 10/100/1000 USD, their trading rank are 1/2/3.

• staking_amount - the amount of token in a staking contract, e.g., user A/B/C stakes 100/50/20 WSE in the staking contract

• staking_duration - the duration of token in a staking contract, e.g., user A/B/C’s staking duration is 46500 blocks ~= 1 week.

Let share = (trading_rank * staking_amount * staking_duration)

• A/B/C’s share are 4,650,000/4,650,000/2,790,000

• A/B/C’s weight ~= 38%/38%/24% by normalizing share into [0, 1]

Therefore, the reward distribution eg. 93,750 WSE for a staking pool in a round

• A/B/C’s reward ~= 35625/35625/22500 WSE

#12

Sounds actually good, but trading rank may be too pricy. Staking amount and duration are easy to make

#13

The rational behind the trading rank is to incentivise to use of the DEX, while growing liquidity. We can definitely set a maximum/minimum trading amount to make this fairer for everyone. Any thoughts?

#14

The trading rank main problem is the gas fee, cause every action on eth chain costs money. We just need to think through every step of the calculating

#15

A compromise would be to set a standard passive staking reward determined by an individuals share of the pool and add trade rank to a “bonus reward pool” that takes stake amount + trade rank to assign additional rewards. This way we incentive both liquidity providers and get more people using WhiteSwap :wink:

#16

The trading rank calculating takes gas, not the reward part of it

#17

Not really , all transactions on WS can automatically be loaded onto a spreadsheet and calculated off-chain and rewards can be delivered through a script.

#18

Do you know what decentralization means, dude? This is far from it

#19

My proposal is not meant to be a permanent part of WhiteSwap, just a program aimed incentivising use and improving liquidity. I happy to hear alternatives to the distribution of rewards that takes into account decentralization. How about staking the LP token and collecting rewards over a layer 2 solution?