Implement minimum TVL for Tiny incentives to combat fraud and abuse

Proposal Discussion
1

I suggest to implement a minimum TVL floor of $5000 for a pool to he eligible to receive $Tiny incentives, with an option to later increase it to $10000 as protocol TVL increases.

Rationale: Currently anyone with a moderate anount of $Tiny voting power can vote themselves $Tiny incentives. This is a side effect of the low $Tiny price, and it is already being abused on a large scale.

It is possible for malicious actors to acquire or create an indefinite anount of worthless tokens, pair them, and the vote for $Tiny rewards for the pair. The anount of Tiny VP needed for that is in anyones reach due to the low $Tiny price. The malicious actors are then rewarded with free $Tiny while sapping rewards from legitimate projects, and acquire even more Tiny VP.

This puts TVL, trading volume, fee income and even the long term future of Tinyman at risk.

My proposal could curb this abuse and incentivise much needed liquidity for legitimate projects and stablecoins.

The earlier this issue is addressed, the better.

3 Likes
2

I think a minimum TVL floor of 5000$ floor is too harsh.

I’d rather add requirement for a token to have at least 10k Algo in any of Algo, usdc, btc or Tiny pools.

This way:

  • it will be harder for fishy ASAs to pass filter.

  • people still will be able to promote decent pools with low liquidity (for example - Tiny/Coop)

3 Likes
3

I think anyone willing to buy and lock TINY, should be free to vote for whatever they want with their TINY.

True, free and open markets and democratization of money is the principle cryptocurrency is built on.

If someone doesn’t like a pool getting a larger %, buy and lock more TINY of your own to diminish their % & increase the % of those pools you think are worthy - simple.

Vote with your money - someone with more skin in the game, willing to back TINY more with more buys & locks, should have more say.

4

I like this, however: Given how small Tinyman’s overall effect on algo or BTC (relative to the 10B total supply and compared to world events vs an algo/usdc liquidity boost on price right now anyway) 100k tiny paired in an LP would attract desperately needed liquidity in key pairings. Although from an administrative side I’m not sure how this could be implemented.

Talgo would be abetter choice as it would directly boost Tinyman’ share of staking fees.

More coordination between Govs to block large APR pools via combining their voting power to boost a specific LP rather than diluting it across small LP’s would be the most useful, democratic, and easiest from a resource spent POV.

(side bar: @TinyGovernor @bernalgo please go check out and vote here please.(Improvements to our Goverance System an xGov Pilot program) Also @FoggyFinder thank you for the votes.)