My concern with the idea of paying interest to USD is that it incentivizes activity which hasn't been proven to generate profit for the Dex. While the idea the locked collateral reduces supply makes sense, I think it provides minimal price support as those creating the assets are already in for the long haul and aren't any more likely to hold because of their leveraged position. If any thing thing these people are now less likely to hold as they now the chance of selling against their will from a margin call. In addition if you view the amount to of bitasset as somewhat fixed (finite number of shorters with finite amount of funds) then increased holding of bitassets puts additional strain on those shorters in their efforts to provide liquidity.
IMO the end goal of any new incentive should be to make the Dex more profitable by increasing the number of actions and fees generated. I think increases in the speed which USD changes hands would be more beneficial than an increase in the amount held. I think the increase in liquidity lately has been encouraging and I think an incentive be to increase liquidity and market making might be a better choice. Just my thoughts. I don't want to discourage the pursuit of improvement, but at the same time wanted to express my concern.
Sent from my XT1080 using Tapatalk
MLM is great when you have a product that has a large audience. First, I don't think the market for traders who want to use the DEX is significant enough to make a large dent for MLM. Also the MLM is not really MLM since it's only 1 level. You don't anything for the people the person you brought in brings in.
Paying out dividends is a much larger audience to reach. Most people are lazy. They want to park there money somewhere and gain some amount of interest or a dividend. If we want to attract traders then a bond market with familiar margin trading is better option.