TIP33 – Create a LON liquidity pool on Arbitrum – Tokenlon Help Center
background
- Based on the Tokenlon Litepaper, 10,000,000 LON has been reserved for liquidity reduction incentives. Liquidity mining started on December 24, 2020 and ran over 7 consecutive phases, with LON 6.8 million spent on the two liquidity pools
- Uniswap LON/ETH pool
- Sushiswap LON/USDT pool
- After TIP 24 the remaining LON was added to the LON/USDT pool. These funds will be used to ensure liquidity for the LON buyback when it is triggered
-
Sushiswap LON/USDT TVL is currently at $5.94 million with an average daily trading volume of $100,000
- The funds are not exhausted
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- As one of the most active Layer 2 ecosystems as well as the optimistic rollup solution with the greatest potential, Tokenlon has introduced a limit order on Arbitrum. While LON is Tokenlon’s governance token, it is only available on the Ethereum network. In order to support LON trading on Arbitrum, we need to create LON liquidity on the Arbitrum network
Goal
- The community is to vote on whether to create LON liquidity pools on Arbitrum. Firstly, this will meet user’s trading needs for LON on Arbitrum and reduce trading costs. Second, it will give LON an additional token utility in the Layer 2 ecosystem
Suggestion
- Create a LON/USDT liquidity pool on Arbitrum at Sushiswap. This is done after evaluating the TVL of various projects on Arbitrum, as well as the needs of users who want to trade LON with tokenlon limit orders
- We start with a liquidity pool of $200,000, which can be adjusted depending on the situation in the future
| Sign | source of liquidity | initial amount |
|---|---|---|
| USDT | L1 LON/USDT pool | 100,000 |
| LON | L1 LON/USDT pool | 1:1 ratio with USDT |
action item
- Withdraw $200,000 LP tokens from the current Sushiswap L1 liquidity pool and redeem LON & USDT. The Tokenlon team will then create a $200,000 LON/USDT liquidity pool on Sushiswap Arbitrum
voting rules
- Only LON, xLON and/or LON LP token holders can vote
voting options
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