Using the Dexie Treasury to increase Liquidity

General Discussions
1

I was browsing through the collection of CATs that the Dexie Treasury has earned here: dexie - Treasury Balance Sheet

What if a portion (or all) of the balance of each CAT was algorithmically distributed as incentives to offers uploaded to Dexie like the current incentive program?

So instead of SBX earning DBX incentive, it would SBX incentive straight from the Treasury. This would be similar to how HOA is incentivized right now - you get HOA incentives for HOA offers.

It seems like an algorithm could divvy out the appropriate amount of incentives based on the current Treasury supply of that CAT. This might also induce large projects or communities to donate CATs to the Treasury to increase the incentive rewards.

Theoretically this would all be self-sustaining. As more incentives are offered, more offers are created, which generates more fees for the Treasury, which generates more incentives for offers.

Thoughts?

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2

This is a pretty cool idea. This would essentially redirect fees back to the liquidity providers (+ a percentage of them are kept in the treasury). Similar to an AMM but with much more flexibility.

I’ve outlined previously to consider volume for incentives DIP-2 - Add liquidity incentives for wUSDC and wUSDC.b - #6 by dns

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