Liquidity on Polygon/Uniswap

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

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

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

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.

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.

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

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

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.

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