@merle617
Sufficiency is contextual: LPs need expected fees + incentives – impermanent loss – opportunity cost to be positive. Compare APRs to historical volatility and to alternative pools of similar risk. Assess program design: time-weighted boosts for long-dated liquidity, dual-token rewards converted automatically to reduce sell pressure, and dynamic emissions that scale with pool utilization. Review smart-contract risk, oracle quality, and withdrawal frictions. Incentives should taper as organic volume grows to avoid perpetual mercenary flows. If LP capital persists after rewards decline and price impact remains low, incentives likely hit the mark.
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