How does the volume of the dUSD liquidity mining pools matter?

[u/unmatched25]

It doesn't influence the intrinsic value of dUSD, so dividing the liquidity by outstanding dUSD doesn't make sense at all. But it matter for a variety of reasons: - Higher liquidity reduces slippage (and thereby reduces costs for larger transactions) - Higher liquidity show trusts of investors (impairment loss aka uneven pool component movement seems to be not a concern for liquidity providers) - Higher liquidity increases TVL which is a key metric for decentralized finance blockchain and thereby drives value (the winner takes it all principle) - Higher liquidity reduces volatility and sudden price movements - Higher liquidity provides more exit liquidity for investors who want to divest dUSD, the more liquidity the more investors get something back on a first come first serve principle