DefiDollar

Liquidity Mining Pools (December)

DefiDollar team would like to propose incentivized AMM pools and their respective weekly allocations for the month of December. According to the community token release schedule, 1.86 million DFD will be mined in the month of December. We propose to incentivize the following pools along with their respective weekly allocations.

  1. Uniswap ETH/DUSD - 92,500 DFD

  2. Uniswap DFD/ETH - 125,000 DFD (on-going)

  3. Balancer 80:20 DFD/DUSD - 125,000 DFD

  4. Curve 3Pool/DUSD Metapool - 120,000 DFD (on-going)

The remaining 10,000 tokens are being reserved for encouraging participation in AMAs that the team is planning to do during the month of December.

Motivation

ETH/DUSD will encourage trades denominated in DUSD as and when an arbitrage opportunity opens up owing to the volatility in crypto prices.

DFD/ETH and DFD/DUSD pools are incentivized to ensure DFD liquidity on DEXs.

  • The 80:20 pool is meant to reduce the impermanent loss for LPs who still want to retain the majority of the exposure to DFD.
  • From the trade activity last month, the DFD/ETH pool has had a high trading volume as compared to the DFD/DUSD pair; hence both are being incentivized.

The DUSD Curve pool helps maintain the DUSD peg, owing to arb transactions like these.

Notes

These allocations are tentative and are meant to open a dialogue with the community about the same. Please about any other pools that make sense and we’d be happy to include provided there is enough interest. We are planning to start these pools on Dec 4.

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We would need to revisit the allocations at a later time again since some rewards will need to go to the ibDFD vault and the proposed sushi pools.

For now, since we are continuing with the same emissions as the month of November, we are actually burning more than the monthly quota of 1.86 million. For now, I am proposing to reduce the current 58/42 bal pool rewards from 250k weekly DFD to 150k weekly DFD. From the reduced 100k, allocating 20k DFD weekly to the vault which is expected (pending audits) to be live next week and the remaining 80k cut will get us back on track on the monthly emission schedule.