We would like to explain why there are some changes to the distribution and why it is essential.
First, we must understand how Flamingo actually creates utility for its users. The people who add liquidity can be called Suppliers, and the people who convert tokens can be called Consumers.
For Flamingo to succeed, we need to take care of the Consumers and the Suppliers. Something easy to forget from the perspective of a Maker. Without the Consumers, liquidity is not required. That is why we changed the minting distribution to move the liquidity to better fit how the Consumers has behaved on Neo Legacy. We understand that some Suppliers might get upset that their favorite pool gets a smaller distribution, but that does not necessarily mean that APY will be reduced. That just means that that pool will have less liquidity. And as a Maker, you must offer a product the Consumers wants and needs.
Why is it essential to have more liquidity in some pools than others?
Let’s look at where liquidity is needed according to where the transaction volume between tokens is. We will see that some pairs (like XYZ-USDT and NEO-GAS) do not provide much utility because they are over “liquified.” There will, of course, be days that are unusual where we have price spikes, and it will be impossible to predict where the transaction volume will go, but this will again result in higher fee earnings for the Makers in that pool.
We set the minting distribution on Flamingo to provide a better service for those who want to convert, so they don’t need to pay fees for converting multiple steps from/to FLM. This results in a smoother user experience as they convert between their FLM’s and different tokens. That ...