Request for Comment stage not on chain vote yet
Proposal A : Implement the Synthetix Inflationary Model and use that as incentives for LPs of a 80/20 YFI/yCRV Pool. This pool’s BPT could then be used as a voting token
Proposal B : Implement a time-lock for rewards, open to discussion with the community on how long it would be
Considerations for $YFI Rewards
- We want to benefit the users of the protocol and arguably users should be the only ones voting on the protocol, what Andre did with Pool 3 was stakers are “using iearn”, are “providing liquidity” and earning YFI
- If we shift the weights on the Balancer Pools we are arguably exposing the LPs to more IL and Capital Requirements, which should be justly rewarded
- At current rates, 10k is much too high. What inflation model Works?
- Governance Participation should be rewarded more than just providing liquidity, yearn has already accumulated $100m in AUM, it’s time to work on governance alignment rather than liquidity bootstrapping.
- Should the rewards be time-vested ?
Proposal A : Fixed Supply Change to inflationary Supply w Balancer Pool Staking
- This creates a pool of incentivized users and aligning Governance with skin in the game
- An 80/20 YFI:yCRV voting pool creates incentives for all of the goals of yCRV adoption, YFI liquidity and governance participation
- Stakers earns Trading Fees, $CRV, $BAL and $YFI and benefit from YFI price appreciation (if applicable)
For : Yes for a 80/20 YFI/yCRV w/ inflationary supply curve
Against : No more tokens will be distributed
Additional Consideration :
- 80/20 YFI/yCRV captures capital appreciation on positive YFI Price movement
- The BPT Token does not need to be the only Voting token, I also believe a 100% Pure $YFI Voting system would be beneficial to the Ecosystem
- The rewards doesnt have to be hard set to this pool as @vsh_p2p pointed out, there are plenty of products to be launched and we can launch a proposal to stream inflation there as well
Proposal B : Time-lock Rewards for $YFI
- All Rewards/week are distributed but vested for a period of time 3m/6m/9m/12m (TBD)
- Considerations: YFI is a new token and time-locking the rewards now would lead to there only being 30k Supply for some time.
For : All rewards will be vested for a 3m/6m/9m/12m (TBD) rolling
Against : Rewards can be claimed at any time as per status Quo
Proposed Inflation Schedule
We would use a copy of Synthetix’s inflation model for this, they’ve spearheaded the way of Inflationary incentives and have proven that it can work.
DeltaTiger from Synthetix Discord has been extremely helpful with this
See Delta Tigers version of the emission schedule in the tab
How would rewards look like once Proposal A is passed?
Came up with this Proposal with the help of Andrew Kang, Will Price, Cooper and Calvin Chu, LongShortFundin and many more and can’t thank them enough for their comments that helped shape this proposal and walked through the thinking of it with me. Also would like to thank and credit DeltaTiger again for not only setting up the original Synthetix Inflation Proposal but also being super helpful in setting this one up as well