Sharing this idea to encourage discussion about whether it is something worth investigating and pursuing.
Stake & Make - Provides a mechanism for ZRX stakers to earn rewards from both staking and making to amplify yield
- Most ZRX stakers are not professional market makers.
- ZRX staking for non-market makers is a mostly passive endeavor.
- Most ZRX stakers also hold and/or trade other crypto assets.
- Liquidity pools such as Uniswap, Curve, and Balancer are popular automated market makers that compete with 0x for trades.
- There is a substantial number of ZRX stakers who would be interested in a way to more actively and predictably earn ZRX staking rewards.
- It is technically possible to create or connect to a Uniswap or Balancer-like liquidity pool that publishes to or transacts via 0x API/Mesh, enabling ZRX stakers to deposit crypto assets and function as market makers in aggregate.
- This capability would attract ZRX stakers by enabling them to earn ZRX liquidity rewards as both market makers and stakers.
- Pricing would be competitive enough to attract non-ZRX stakers as traders.
- This could potentially be connected with matcha (but doesn’t have to be).
- Benefits 0x ecosystem by increasing trading volume on 0x API/Mesh via additional liquidity source with more invested stakers.
- Benefits stakers by enabling them to more directly affect their own staking rewards with higher rewards for all (via protocol fee generation).