There is also a governance imbalance risk. Lifinity will get 2M MNDE and will use it to vote for themselves in the gauges.
When a protocol gets MNDE and votes to incentivize their own pools, the MNDE gets distributed among their community members who are the LPs. Some of them are bound to sell, or forget to re-vote on the gauges.
In this case Lifinity is the sole LP, so they will reap all the rewards which they can then use to direct more rewards their way every cycle.
I can’t say how much this will be. The initial liquidity mining gauges distribution closes in three days. I expect we’ll get some last-minute whales voting. Once that’s closed, it’ll be easier to calculate and create a model.
It’s hard to see how a potential imbalance like this one would play out.
On the one hand, it can make Lifinity a dominant player on the liquidity gauges. On the other, it could incentivize other protocols to acquire more MNDE to direct rewards their way.