Assuming the Visor Finance proposal passes (it is looking like it will), this will go quite a way to generating liquidity for TCR on the secondary market. However, I am proposing that we may need to further supplement TCR secondary market liquidity. This could be in the forms of rewards to individuals users who LP a TCR asset pair on a secondary market (e.g. Uniswap V3, Sushiswap).
There has been (and rightly so) a lot of discussion regarding TCR liquidity on the secondary market. Admittedly, there is a severe lack of TCR on secondary markets on mainnet (and to a more extreme extent, on Arbitrum). There have been many examples of this sentiment in the community (here, and here) and further, many proposed solutions to how to solve this lacklustre liquidity.
The proposal by Visor Finance is a welcome step. Contingent on it being passed, this will help aid the problem of lacking TCR liquidity. However, I am weary that may not be enough. As such, I am considering the idea of supplementing the Visor Finance initiative with rewarding users for LPing their TCR. I think this ties in with what has been discussed in this post here, and here.
I think it may be worth giving some TCR rewards and/or a percentage of protocol fees (as suggested here) to those who provide TCR liquidity.
If the TCR liquidity is still lacking (if) after the Visor Finance proposal is executed, should we look into rewarding users who provide TCR liquidity on the secondary market?
- Support EOI → create formal proposal
- Reject EOI