DefiDollar

Liquidity Mining Pools (January)

Liquidity Mining
#1

DefiDollar team would like to propose incentivized AMM pools and their respective weekly allocations for the month of January. According to the community token release schedule, 1.86 million DFD will be mined in the month of January. Incentives for December are running out on Dec 29, so there need to be a total of 5 reward funding events on Dec 29, Jan 5, Jan 12, Jan 19, Jan 26.

We would like to reserve 10k DFD tokens for a potential user acquisition campaign on RabbitHole and/or AMAs. That leaves us with 1.85mil/5 = 370,000 DFD tokens per reward funding event.

We propose to incentivize the following pools along with their respective weekly allocations. All these pools are currently already incentivized.

  1. Balancer 58:42 DFD/DUSD - 100,000 DFD
  2. Curve 3Pool/DUSD Metapool - 100,000 DFD
  3. Uniswap DFD/DUSD - 75,000 DFD
  4. Uniswap DFD/ETH - 65,000 DFD (Revised based on feedback)
  5. DFD Staking (Buyback vault) - 30,000 DFD (Revised based on feedback)

Notes
A. 20,000 DFD weekly incentives for DFD Staking vault are in addition to the buyback amounts. This is to encourage staking until the buybacks are sufficiently high to sustain the vault independently.

B. Sushi team is working on a joint liquidity mining contract for users to be able to farm DFD + Sushi together from a single staking contract. The current ETA for the same is the third week of Jan and we plan to retire the Uniswap pools once that is live.

1 Like
#2

Nice one thanks.
more Incentive to curve which will help the protocol.
reduce of buyback staking reward but still the buyback will grow.

#3

Hi guys,

Thanks for setting these out. Overall the general flavour looks good.

Obviously there are two factors in play here - firstly the amount of returns for the DFD stakers being “reduced” (that may be the perception) and the incentives shared around the other various pools.

  1. DFD stakers - we have just gained a large number of DFD community members thanks to the launch of the vault and a bit of social campaigning. My instinct is to try to make sure we keep/reward as many of them as possible. DFD needs to be seen as desirable and useful to those who aren’t in the yield farming / LPing business. The more people who stake, the less on the market and the more demand / price will increase. My personal view is to try to squeeze as much “extra” help to it (maybe 5k-10k each from the Uniswap pools?) to try to maintain returns. Remember that also DFD holders are the “purest” form of faith in the organisation - it’s not hedged in an LP against DUSD or ETH…so the return for stakers should be good.

  2. Curve pool and Savings pool - currently we have two different pools for “zero IL” LPing. Obviously the main aim of the team and community right now is to try to increase the number of DUSD minted so it is positive to see a proposed increase to curve rewards - and it’d be great to see a Medium article on how to stake using Curve too.

  3. Uniswap pools - it’s good to maintain the rewards for the month if Sushiswap is delayed slightly (and it’s good to plan to increase Sushiswap rewards for these LPs when it begins. Again, trying to align the DFD holders with DFD/ETH and DFD/DUSD holders is important - and since we know there is going to be a transition to Sushi and we also know that we have lots of new holders RIGHT NOW in the staking vault I’d consider moving or replacing some of the emissions to them. The biggest risk at the moment is people thinking the returns are going to go down and unstaking / moving to other projects right before the big partnership for dual staking is launched.

TL/DR - do whatever you can to maintain staking rewards for DFD stakers and DUSD minters until end of January to keep the new users we have gained over the past couple of weeks. Keep fleshing out the infrastructure so that the TVL grows / amount in buybacks keeps growing and incentives are needed less and less in months following.

2 Likes
#4

You make an interesting point.

Also, I noticed that the DFD-ETH pool on sushi still has quite low liquidity and hence high APY (352%). I think we should be ok with some of the LPs moving to sushi instead of uniswap and for that reason, I think we can scrape off 10k from Uniswap DFD/ETH pool and assign it to the vault.

2 Likes
#5

Looks good! Are these weekly allocations more than last time? Or is the same amount of DFD being farmed?