I think it's a win-win to add vTokens to the Omnipool. Bifrost needs more token use cases and Hydra benefits from more trading volume. Polkadot users get to hold LSTs accruing staking yield while using them across Polkadot DeFi.
I would suggest derivative token listing requires 1) the base token is listed in the Omnipool and 2) have at least $1M issuance so there's enough mint/redeem capacity on Bifrost to stabilize its value.
Like Jose mentioned, the major sticking point is where the initial liquidity deposit comes from. The Hydration treasury POL was used to kick start the deep Omnipool liquidity by buying major tokens that people would want to trade but for which there was no overseeing community/treasury (like BTC, WETH). Adding the winning LST (vDOT) was very necessary. However, Hydra POL has never been used to buy parachain tokens which individual treasuries can deposit to benefit their tokens. And I don't think the Hydra treasury should have a habit of buying more and more derivative tokens with its limited resources, reducing liquidity in the central core tokens.
What if Bifrost starts with vBNC? The Bifrost treasury can mint its own vBNC and then deposit it into the Omnipool? Next is there a way for Astar and Bifrost to partner to generate vASTR for a deposit? Perhaps Astar treasury contributes the ASTR in exchange for a revenue share on the vASTR staking? Or perhaps Bifrost uses LST revenue to buy more of that LST to build up the liquidity?
hey guys TP from Bifrost.
Quick update given that Bifrost treasury does not hold vGLMR nor vASTR we are discussing with both respective teams foundation/treasury around them minting and deploying these assets direct in the omnipool. Furthermore, Bifrost would consider incentivising both assets with BNC. We will share more information regarding this once we have finalised discussions with both teams.
@spazcoin we will very likely be pushing vBNC into Hydration Omnipool once we have migrated Bifrost Kusama to Bifrost Polkadot and BNC can be staked on Bifrost Polkadot.
By following up with TP's comment,
In the past few weeks, we've explored the possibility of initial liquidity with Astar and Moonbeam. We plan to start with vASTR first, as the Astar foundation intends to provide $100,000 in initial liquidity. Meanwhile, we will propose a liquidity incentive from the Bifrost treasury. This incentive is expected to be around 3-4% APR with a target liquidity of $1m, in a three-month trial.
SInce vGLMR TVL is temporarily under $1m and we haven't got reply from Moonbeam Foundation, so we would propose still register it as an asset on Hydra but remove it for adding to Omnipool in this proposal.
Edited
I know this is a discussion to simply register the tokens in Hydration, but I understand that the purpose is to list in the Omnipool, right?
Who will provide the initial liquidity for those assets 👀?