SPOT/USDC should have SPOT rewards. ETH/AMPL could have either one.
I want to remind everyone that although deep liquidity is important, the SPOT/USDC Fly geyser should be kept small. But I’m not sure why “We’ll need to balance the extra demand with the healthy growth / supply caps of the system.”, can @Brandon explain?
So should SPOT/USDC have SPOT rewards or AMPL rewards?
If AMPL demand goes up, the AMPL market cap goes up, AMPL rewards increase, more provide SPOT/USDC liquidity, and maybe there is more demand for SPOT. As the community knows, more demand for SPOT means more demand for AMPL.
With AMPL rewards, there is a positive feedback cycle. I believe the team wants to avoid any growth spikes, and they think slow sustained growth is healthy.
With SPOT rewards, there is no such positive feedback cycle.