Potential use cases

We already know that Somm tokens will not have inflation (At least to begin with) .
If we were to build our ideas around a 0% inflation token here are some of them that we could discuss about . These are very very rough ideas and may not even be logical in some cases , but I thought kicking off a discussion would be a good idea .

  1. Requiring at least 100 somm token staked to a validator to be eligible to provide liquidity .
    Con : Will deter LP providers from using the system … possibly ?
    Pro : Assuming providing LP is exclusive to somm holders the quality of long term LP providers would improve and would avoid mercenary farmers ?

  2. Allow staked somm tokens to be proportionately distributed across gov- whitelisted LPs.
    i.e : Staking would mean automatic LP providing .
    Con : Impermanet loss becomes an added risk along with downtime &/or double spend slashing.
    Pro : Revenue from fees earned (from any token) can be exchanged for somm and redistributed to somm stakers . This provides a way to reward Somm stakers without the need for making the network inflationary.
    Assumption : This is assuming community is open to having somm based pools.
    Note : Inspiration is taken from Superfluid staking idea at Osmosis.

  3. Make Somm a deflationary token based on usage i.e : Burn somm every time a liquidity provider decides to exit the system . To ensure they dont get burnt (pun) , the burn would be proportional to a multiple of 0.0x of thier earnings in fees . There can be a stablecoin pool with somm that will be utilized to perform this action.


Love the ideas for this token, Impermanet loss is a necessary evil…you can’t have your cake and eat it too. Superfluid was another idea ahead of its time. And deflationary, who wants more?