Conversation

2) Right now people are liquidity mining. What does that mean? Well each week about $3m worth of BAL at current prices are airdropped on people who are storing coins in pools. This is way higher than the cost of doing so, so people started putting assets in random pools.

3) Very few of these were trading, but most were earning BAL. Any ERC20 token with pricing from

@coingecko

worked. So, earlier today about $100m of USDTHEDGE and USDTBEAR showed up:

4) This was a clear indication of what had been going on for the past few weeks: most of the usage was to mine BAL. So what does one do about this, and how did the Balancer community handle it?

5) Well, the options were: a) get rid of the BAL distributions b) restrict the set of coins that would be eligible c) (b), and also retroactively apply it d) do nothing What's the right thing for the protocol?

6) Well, from a usability standpoint, I think that the best answer is A > B > D > C. Why? Really, liquidity mining is stupid. It's similar to transmining, creating effectively negative fees to create the impression of activity. People should use a product if it's useful!

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