Liquidity on Polygon/Uniswap

1

Currently, most liquidity on Polygon is on Quickswap. It cost 30bps to make a swap and Uniswap is gaining a lot of market shares on Polygon.

I’ve made an experiment by allocating $1500 (or so) to a 5bps ETH/agEUR and USDC/agEUR pair. As comparison the Quickswap host $5M

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Yet even with such low liquidity, Uniswap is taking a visible market share.

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Moreover, it seems to add trades and usage of agEUR.

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If we reduce the trades to those of less than $100 (again not much liquidity on Uniswap to do better), Uniswap is almost even with Quickswap on a volume basis.

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As we are moving probably to provide agEUR on Aave, it is paramount to have a great liquidity with low friction (5bps instead of 30bps).

If you want to participate, feel free to add liquidity. It’s not a great investment (2% APY?) but I guess useful for the protocol.
The parameters I used

At this stage I would avoid to add liquidity with other EUR-based stablecoins.

It would also be great to add agEUR as recognized on Uniswap/Polygon. We could also check with Gelato to provide some GUNI tokens.

2

Great experiment!

On my end, I support switching incentives on Polygon from Quickswap to another alternative. Several options I guess:

  • agEUR/USDC on UniV3 5bp
  • Uniswap is discussing 1bp pools, should we wait for this?
  • Should we wait for Curve V2 factory pools on Polygon as well?

I think it should also be a no-brainer to switch incentivized liquidity on Uniswap on Ethereum to lower fees pools. I’ll formulate a proposal this week in this sense. Essentially:

  • UniV3 agEUR/USDC 5bp → switch to 1bp
  • UniV3 agEUR/ETH 30 bp → switch to 5bp
3

And yes being a connector token on UniV3 would be great! Trying to get connected to the Uniswap team to make a case for this

4

To move incentives, I think we should wait for the 1bps pools to see what happen.

We don’t need a lot of liquidity. I think both ETH and USDC should be there in order to have more arbitrage opportunities.

Actually, by providing cheap agEur lending on Polygon, that could do the trick.

5

Ok let’s wait then!
And true that we could create a ETH/agEUR pool!