Protocol-Owned-Liquidity Initiative

One of the main focuses for Nexus in near future is to acquire and maintain Protocol Owned Liquidity in order to minimize the inflationary pressure on Nexus Governance token. At the moment, over 80% of token inflation is caused by LP incentive programmes (Psi-UST, nLuna-Psi, nETH-Psi).

Currently Nexus’s pursuit to Protocol wonder liquidity have three branch of strategies :

(1) Pylon Pool

(2) Redirecting accumulated Tax

(3) *Bond Issuance

First two Pylon Pool and Redirecting accumulated Tax is already implemented and functioning, thus only follow-up frontend and strategic effort to analyze and data sharing effort is required.

Pylon Pool’s performance and update would be provided on monthly basis via forum and governance proposal, in conjunction with the proposal to utilize $Psi from community fund to match with UST accumulated from Pylon Pool to mint & provide Psi-UST LP tokens to Nexus Treasury.
- Pylon Pool Monthly Report Dec2021/Jan2022
- Pylon Pool Monthly Report Jan2022/Feb2022
- Pylon Pool Monthly Report Feb2022/Mar2022

Dynamic updates on redirected accumulated tax would be available on the upgraded dashboard, which would be soon released.

*Bond Issuance

Final mechanism to actively pursuit Nexus PoL would be served by Olympus Pro styled bond-issuance mechanism, where the users may mint Psi bond at discounted price, where the discount rate would be dynamically determined by algorithm. The Psi bond minter may claim Psi after locked period of time (e.g 5 days)

Additional inflationary pressure created by the bond issuance mechanism will be carefully considered and monitored, so that the net inflationary pressure would be negative; contributing to the enhancement of Psi value accrual.

Psi tokens required for such bond issuance programme would be requested to Nexus Governance via monthly proposals with PoL update and justifications.

Bond Issuance service is expected to be launched by Feb 2022

4 Likes

what is the status? Can we have an update? I am interested in both PoL and bond issuing.
The pylon pool looks to have worked very well and can provide around 7mn in the full period if nothing changes. This sounds very good for PoL.

1 Like

Pylon Pool side of the updates have been happening regularly; please refer to the following posts

With regards to bond issuance; please refer to our latest update via discord

to quote the relevant part from the announcement:

  • One of the other initiatives we’ve been working on is PoL (our Bond Issuance Program). Establishing protocol owned liquidity is still a key priority for Nexus. We see this as being important for the longterm health and sustainability of the protocol. This product is now complete from a development standpoint. However, in terms of timing of releases we would prefer to ship products which attract more TVL before shipping our Bond Issuance Program. As such we will be targeting the back half of March for a launch date for this program. More details and related government proposal will be presented in advance (very Early March) to accommodate necessary updates.

In follow up to the announcement above, we will soon push out proposal to prepare for Bond Issuance Program Implementation.

2 Likes

fantasitc. Thank you.
The PoL in astro should also yield astro. Is it decided what to do with them?
P.S.
I posted here based the title of the thread. If there is a better place to ask let me know.