Want liquidity providers to stay? You need to keep offering them better incentives, or they'll just turn around and leave. Any DEX's survival depends on one thing — can you provide liquidity that traders can actually use? Ultimately, traders only care about one thing: the exchange rate. If you can offer them a sufficiently good price, liquidity will flow in continuously, and market share will follow. And this response is incredibly fast.
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GasFeeWhisperer
· 18h ago
Basically, it's a price war—whoever has a better exchange rate wins.
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LightningLady
· 18h ago
Honestly, incentives have always been a pain point for DEXs. Despite pouring money into it for ages, liquidity still gravitates toward the top projects, which is really absurd.
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MEVVictimAlliance
· 20h ago
Inadequate incentives cause LPs to really leave at will, this is the curse of DEX.
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ContractHunter
· 01-14 00:01
That's right, DEX is a zero-sum game. Only when prices are good will liquidity truly come in.
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GasFeeSurvivor
· 01-13 23:52
In simple terms, it's the sheep paying for the wool; without incentives, there are no LPs either.
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EthMaximalist
· 01-13 23:45
Basically, LPs are not fools. They follow whoever pays more. DEX still depends on the price difference.
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OnlyUpOnly
· 01-13 23:37
Basically, it's just involution—whoever has more incentives will go there. Liquidity providers don't care about feelings at all.
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ReverseTrendSister
· 01-13 23:35
Basically, it's still a zero-sum game; whoever gives more wins. LPs have long seen through this.
Want liquidity providers to stay? You need to keep offering them better incentives, or they'll just turn around and leave. Any DEX's survival depends on one thing — can you provide liquidity that traders can actually use? Ultimately, traders only care about one thing: the exchange rate. If you can offer them a sufficiently good price, liquidity will flow in continuously, and market share will follow. And this response is incredibly fast.