First thank you @OPUser @Prometheus and @Dicaso for the help in bringing us back to topic.
This is where I think there are some scope of improvement, three distribution with 100K each might bring the liquidity but there is nothing to hold them long term.
I believe this is the crucial question.
I think we agree that attracting liquidity by distributing money is easy enough, as has been proven by multiple liquidy mining programs, keeping at least a very significant portion of it is really the problem to solve.
So what makes liquidity stay or leave? Phrases like “mercenary liquidity” are often used. If we drill down to it, the issue starts from what type of liquidity you are attracting with the incentives.
As example, if you were to do a liquidity mining program on a hypothetical WBTC/WETH pool on Optimism that resulted in people getting +100% APR improvement, that pool will attract A LOT of liquidity fast. It will migrate liquidity from mainnet for sure, but It will also attract liquidity that was not previously LPing on that pair at all, it will even attract liquidity that might not even hold one or both of these tokens. The last two cases are liquidity that will very likely leave as soon as incentives stop.
An an example on the other end, if you do a liquidity mining program on that same pool that results in a modest, say 6%, increase in APR over the pair on mainnet. I believe that it would be an attractive enough proposition for a lot of existing LPs on mainnet to migrate. It is much less attractive for people that did not previously think LPing on that pair was attractive, or those who might not even own some of the assets. So by keeping the extra incentives APR to a reasonable level, you select for liquidity that is more likely to be sticky. Granted, this would be the first liquidity mining program we run, so this thesis is to be validated.
You also mention in this thread that this distribution might last for 1 year, so which one we should consider ? 3 month or one year ?
So the timeframe of the distribution could be extended with the intention of not allowing the extra APR to get too high. However, by directly and clearly explaining the APR improvement to existing LPs on mainnet that use our app, I believe we can migrate the 20m in a 3 month time frame without problems