according to my research the current staking level of $bico for pools and staking is around 8500$BICO per day which makes the selling pressure in the market extremely large. Why is the project so wasteful? Whether it is with the current allocation of $380,000,000 just to give away and not contribute much, this is what the protocol says is the capital efficiency. Currently, I do not appreciate how the token section of this community is used. if you want people to lock tokens to pumb and dump, it doesn’t seem to work right now, that directly affects retail investors as well as private and seed investors…
If the project is quite stuck on the design of farming and staking, I suggest you can refer to the design of the Defi Kingdoms project, about how they pay token rewards.
The purpose of providing liquidity, and staking is to secure the network as well as encourage users to contribute to the platform as I see it now, has failed. As far as I know, currently the biconomy network may only have a few nodes run by the team so staking does not make the network more secure, but just a reward for others to lock their tokens. with the Liquidity pool, the daily transaction volume is too low compared to the amount of $bico tokens being released → this is a bad thing.
I still appreciate the possibility of the project but in general, no one will want to keep the bico token and contribute to the project other than the team.
More comments to come…
Hey Peter, thanks for the note and your interest in enhancing BICO’s utility. You have a few good points that I want to discuss individually:
- According to my research the current staking level of $bico for pools and staking is around 8500$BICO per day which makes the selling pressure in the market extremely large. Why is the project so wasteful? Whether it is with the current allocation of $380,000,000 just to give away and not contribute much, this is what the protocol says is the capital efficiency.
Roughly 80% of the daily emissions come from Hyphen LM and the Safety Module (~35% and ~42%, respectively). The remaining daily emissions are for short-term DEX LM reward programs that we are actively monitoring and assessing how we can reduce/eliminate asap. A quick note on the latter category: from my research you pay for liquidity in one way or another. Any ideas on how to more efficiently source DEX liquidity is always welcome (btw, check out the Tokemak reactor vote happening now–we def need support there). And the additional challenge there is we need/want BICO on all supported Biconomy chains, so that means many DEX pools. Regarding Hyphen LM and Safety Module, these are essential programs to build out an operational and secure liquidity bridge. We may have swapped a large portion of our treasury BICO for USDC to fund USDC only pools with protocol owned liquidity (Stargate model, which also has a cost associated), but our thinking around this was to build a liquidity bridge where the community could earn yield (by LP’ing) and therefore have ownership and therefore promote the use of Hyphen. I think this is the best model for DeFi, but in the short term it requires LM to bootstrap liquidity. We don’t see LM as important as growing volume, since volume will generate organic yield for LPs, but in the alpha version of hyphen we thought it best to have a sufficient liquidity buffer while things like our pricing model/arbitrage function are being optimized. So, back to your point about capital efficiency–we need to have an optimized arbitrage network to be fully capital efficient. That, we are working on. This alpha period is referred to as the Managed Liquidity period, and will be phased out as the bridge matures. As for the Safety Module, it is no secret cross-chain is risky. We are the only cross-chain bridge with an insurance fund (to my knowledge) and we see that as a big reason to be a part of the Hyphen ecosystem.
- The purpose of providing liquidity, and staking is to secure the network as well as encourage users to contribute to the platform as I see it now, has failed.
I agree. See points above. The Safety Module was conceived in the spirit of securing the bridge (i.e., we realized the need around the time of the Wormhole hack). Stay tuned for the latest on Biconomy Protocol, which is our path to decentralization.
- As far as I know, currently the biconomy network may only have a few nodes run by the team so staking does not make the network more secure, but just a reward for others to lock their tokens.
We are working really hard to get an updated, finalized whitepaper out that discusses our plans to decentralize the network. The plan involves maximally decentralizing protocol actors.
- with the Liquidity pool, the daily transaction volume is too low compared to the amount of $bico tokens being released → this is a bad thing.
I think you are referring to Hyphen here. We purposefully targeted a higher TVL for the reasons I mentioned in bullet one, above. We definitely need to increase Hyphen traction. We see the best opportunity to do this through partnerships/integrations. We are always open to suggestions/leads that translate to increasing Hyphen volumes.
- If the project is quite stuck on the design of farming and staking, I suggest you can refer to the design of the Defi Kingdoms project, about how they pay token rewards.
We are actively working on a rewards platform. I’m not directly involved but I think some news will be out in a few weeks on that front. I’m actually quite intrigued by projects with multiple tokens, where each token has its own purpose. I have some ideas here, but would love to hear about yours. What is it that you like most about DeFi Kingdom’s token engineering?
what if bridge user will be the one to provide that liquidity and they will get free transfer (eg I want to transfer 15,000USDC from BNB chain to Avax, I just need to add to Lp around 1,500USC and I get free transfer fees) “it’s not enough tight but you can refer to that solution” ? now the fees from 0.1-0.2% for lq is quite expensive for users and i believe it will not be able to compete with other bridges like stargate, multichain…
refer:
their reward strategy from farming. It is beneficial for holders as well as for liquidity providers, they will get more attractive profits if they lock in liquidity for longer, and the amount of tokens emitted when farming will not be much.
and one more thing, if Hyphen product can’t compete with current protocols then I think the project should drop that product and focus and focus on Gasless, Gasless product is very special and I see biconomy doing very well now.please make your sdk used for most current and upcoming projects.
this is hard to do because most of the community has now lost faith in the project because the price has dropped so much that they are not happy, and when they are not happy no one wants to contribute 
I see. So, if a bridge user can prove they are currently providing liquidity to one of the Hyphen pools, then they can transfer for free on Hyphen up to a certain amount. The amount of “free” transfers they get are dependent upon the amount of liquidity they are providing. Is this correct?
Yep, that right. they can transfer limit amount per day to get free bridge fee. that’s my Ideal