dhive

SIP-3: Redirect Farm Emissions to USDs - USDC pool


Author(s): Sperax Core Team

Reference: Mentioned in recent AMAs

Created: Jul 20, 2022

Labels: #LiquidityMining

Simple Summary

Redirect 20% of daily emissions from the USDs - SPA farm to a new APR USDs - USDC farm.

Abstract

To ensure adequate liquidity for peg stability, the Sperax team is proposing to launch a new incentive for users to park liquidity into the USDs - USDC Uniswap pair on Arbitrum. Instead of adding to the daily emissions, we propose to redirect emissions from the existing USDs - SPA pool to this new one.

Motivation

To ensure USDs keep it’s peg, there must be adequate liquidity on DEX’s to ensure arbitrage is profitable. We could launch a new farm which would require additional SPA emissions, and potentially SPA sell pressure, or we could redirect from the existing USDs - SPA farm. We propose to redirect instead of adding to emissions.

Overview

Currently the Reward Rate for the SPA-USDs farm is

  1. For all users (lockup+no lockup) = 466.663K SPA/Week
  2. Additional reward rate for lockup users = 233.331K SPA/Week

20% of this pool will be redirected to the new farm to incentivize USDs - USDC liquidity.

So reward rate for the new USDC-USDs farm will be

  1. For all users (lockup+no lockup) = 0.2 * 466.663K SPA/Week
  2. Additional reward rate for lockup users = 0.2* 233.331K SPA/Week

New reward rate for the existing SPA-USDs farm will be

  1. For all users (lockup+no lockup) = 0.8 * 466.663K SPA/Week
  2. Additional reward rate for lockup users = 0.8* 233.331K SPA/Week

Technical Specification

Sperax team will use the Multisig to redirect rewards from the USDs - SPA pool to the USDs - USDC pool. To fund this pool 20% of the daily emissions will be redirected from the existing pool to the new pool. There will be 93,332 SPA/Week going to all users and an additional 46,662 going to lockup users as a bonus. This number was calculated by taking the weekly reward of the current farm for all users 466,663 *0.2 and the weekly lockup bonus of 233,331 *0.2.

Warning

Exercise caution when exploring DAO proposals. Proposals can be submitted by any member of the community so there's an inherent risk of encountering scams or deceptive links. Always critically assess the validity of each proposal and its links before taking action.
start
July 20, 2022
11:00 PM
end
July 23, 2022
11:00 PM

Voting type
single-choice
Votes
99,994,480

Final Votes
closed

Yes
86.1M veSPA
86.1%
No
13.9M veSPA
13.9%