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mining creates value depth creates utility, duh private investors in ftx, exchanged cash for equity. that's meatspace liquidity mining man

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SBF

@SBF_FTX

Jun 24, 2020

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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True, but the scale here matters. FTX has $1b/day and pays about $750kmonth for liquidity; Balancer has roughly no trade volume and is paying $12m/month for it.

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and

In particular: if payments are in line with volume and use, they help get more liquidity. If payments are way greater, they create unused liquidity aimed at the incentives rather than trading.

1:18 PM · Jun 25, 2020Twitter Web App