$SWISE Listing & Joint Liquidity Mining Campaign with 1inch

  • Impermanent loss — depending on the price of tokens at which you deployed the liquidity, $SWISE appreciation might eat into your capital via impermanent loss.
  • Mitigating factors: 1inch employs the concept of positive slippage (also called the Spread Surplus) to keep the difference between the quoted price and the execution price for the LPs in the pool. This means that during periods of volatility, LPs earn several times the amount that would be earned in a similar pool on Uniswap, as trading fees are supplemented with a spread surplus. In the experience of founders that listed their tokens on 1inch, the revenue generated from the two factors fully compensates for even 15–20% impermanent loss within a couple of weeks. This makes us confident in the safety of funds of the $SWISE / $1INCH LPs.
  • Abrupt ending of the incentives — without a clear plan to continue allocation of liquidity mining rewards to this pool or another pool, $SWISE could experience a rapid loss of liquidity and depreciation vis-a-vis $1INCH, undoing any prior positives from launching on 1inch.
  • Mitigating factors: the team has a clear plan for the next steps of liquidity mining for the $SWISE token and will execute on it in a timely manner.
  • Farming incentives — current APY from from $1INCH and $SWISE farming combined is ~500%, making it worthwhile for LPs to deploy capital in the pool.
  • Trading fees — currently work out to ~800% APY, certainly mitigating any amount of impermanent loss sustained by LPs on the $SWISE appreciation.
  • Broader exposure for the StakeWise protocol — 1inch is a great platform for token launch, giving us a wide exposure to farmers and ordinary users alike. Achieving decentralization of ownership is important for the consequent listing on centralized exchanges, and the 1inch listing is a great first step in that direction.

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