In a recent development, NFT-specific AMM protocol Sudoswap was approved for its proposal to “add transfer functionality to SUDO tokens.” According to Uniswap V3, the proposal has entered the implementation phase, and the current price of the token is around $3.50.
Sudoswap’s proposal to increase the transfer function $ sudo token approved @sudoswap @azcoinnews https://t.co/pKh5tldnfc
— AZCoin News (@azcoinnews) February 19, 2023
Sudoswap, which airdropped its SUDO tokens to eligible users on Jan. 31, had previously submitted a proposal but it was rejected due to lack of required representation. The previous vote was also rejected due to concerns about SUDO/ETH liquidity.
One of the main concerns raised by recizk.eth was the possibility of using treasury as a buyer for LPs. There was concern that the DAO would end up buying back a free token if the airdrop recipient gave it up. In this regard, the proposal suggests that DAOs should use equity tokens that can print more when needed, rather than hard currency like ETH in the treasury.
The proposal suggests that pool ownership (POL) should preferably be established after the price stabilizes. As proposed, setting up POL at launch may provide exit liquidity for large holders and airdrop recipients. The proposal suggests that incentivizing liquidity providers (LPs) would remove this risk.
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The proposal also introduces a three-month liquidity mining program for UNIv2 SUDO-ETH LP with a target of 30% APR and $5 million TVL. This will require issuing $375,000 worth of SUDO over three months. If the price of SUDO is estimated at $2 per token, this equates to 187,500 SUDO (1.25% of the treasury) allocated to LPs over a three-month period. Given that LOOKS has about $7 million in liquidity on Uniswap, it seems reasonable to target SUDO liquidity at $5 million. The DAO can then decide on a long-term solution for the POL.
SUDO holders can vote for the SUDO transfer function and support UniV2’s three-month liquidity mining plan. On the other hand, a vote of “No” means that the proposal is not supported.
Sudoswap is a promising product that needs more exposure, education, and encouragement. As interest in the protocol grows, we can expect more NFT volume data, which may help determine the type of NFT liquidity we should incentivize in the future. The proposal aims to support the growth of Sudoswap by increasing the liquidity and transferability of tokens, which may attract more users to the platform.
- Sudoswap Airdrop and Launch of New Token SUDO
- Sudoswap suddenly announced the token distribution plan, and the price of SUDO skyrocketed by 30%
board pass
according to AZCoin News
