DefiDollar

Liquidity Mining Update (June)

We plan to continue DFD emissions for the following pools:

  • 680K DFD for the month of June has been allocated to wBTC/ibBTC SLP pool; being distributed via the badger app. This chunk has already been transferred.

  • Continue 300k DFD (75k/week) emissions for DFD/ETH SLP.

  • Continue 60k DFD (15k/week) emissions for DFD stakers.

  • We propose to discontinue the emissions for DUSD curve pool.

It is becoming clear that the DUSD savings account has a better market fit than the utility of DUSD as a stablecoin. Hence, we think it is in good interest for the DAO to not continue spending any more funds on the curve pool and let only organic liquidity remain in the pool.

Since the DAO is not subsidizing DUSD anymore, it makes sense to discontinue the 50/50 fee split too between the DUSD savings vault and the DFD Buybacks. A higher APY will organically attract more liquidity to the savings account.

Next quarter, we want to introduce a brand new tokenomics design that has revenue sharing from the fee accrued from ibBTC.

I am afraid that we are rewarding the wBTC/ibBTC SLP pool too much. Just see what is happening with Badger and DIGG tokens. Both of the tokens are used to reward different BTC pools on Badger DAO. Problem is that the people who are staking in those BTC pools do not really care about the price of the rewarded tokens as they did not invest in them. They are just selling the rewards as soon as they get them, till they drain the tokens of their value and then move to another project for better yield. Now the DIGG is almost dead and Badger price is in a continuous decline. You may see that something similar is happing with DFD after it was rewarded to the wBTC/ibBTC SLP pool. Could we at least consider changing the rewards from DFD to ibDFD and increasing the withdraw fee to 1.5% if the tokens are withdrawn within 10 days after they have been received? Thus at least there will be some fees for the protocol

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I am afraid that we are rewarding the wBTC/ibBTC SLP pool too much.

I think it’s ok. It’s based on previous snapshot votes (DIP-2 and DIP-4) and ibbtc is driving most of the revenue and TVL for the protocol at this point.

Just see what is happening with Badger and DIGG tokens. Both of the tokens are used to reward different BTC pools on Badger DAO. Problem is that the people who are staking in those BTC pools do not really care about the price of the rewarded tokens as they did not invest in them. They are just selling the rewards as soon as they get them

This is an issue with most liquidity mining programs.

Could we at least consider changing the rewards from DFD to ibDFD and increasing the withdraw fee to 1.5% if the tokens are withdrawn within 10 days after they have been received? Thus at least there will be some fees for the protocol

This is a great idea. The quota for June has been transferred, we will do this from next month onwards. We might even assign the DFD rewards for other ibbtc use cases that promote utility.