Now that TGE is behind us, there has been a lot of selling pressure from early liquidity providers. They deserve the rewards for being early and taking the risk. I propose to start a staking pool for SI tokens. A staking pool for SI will help absorb some of the sell pressure and also because at the moment SI token doesnt have utility.
The rewards for SI staking should be significantly lower than the rewards emitted for SI-ETH Uniswap pool as that pool has risk of IL. However the rewards should be large enough to be meaningful so that gas costs to stake and claim are met.
This approach is very similar to that of Barnbridge project. They too faced a lot of selling pressure from LPs at the beginning. Later on once Pool2 and Single staking pools were introduced, not only did it stem the selling pressure, it did see some buying as well.
Why a staking pool is required if Pool 2 is already live?
A pool 2 does not cater to the risk appetite of everyone because of the risk of Impermanent Loss. Also one may not have the 2nd asset (ETH in this case) in equal proportion. He is forced to sell half of SI tokens to have enough ETH to be an LP of pool2.
Happy to discuss.