Hello Sundae DAO Community!
I would like to open a temperature check about a plan to update yield farming parameters in response to the launch of Sundae v3
Context
We propose making only Sundae v3 pools eligible for yield farming rewards to incentivize the migration of liquidity to v3. Additionally, we propose remapping a delegation to certain v1 pools to their v3 counterparts to make that transition smoother while people update their delegation.
Since this vote is for updates to an existing program, it will run for 3 days.
Background
Currently, Yield Farming is entirely user driven by SUNDAE token holders delegating to pools to determine rewards. Users lock up SUNDAE, and choose a percentage breakdown among a set of pools, and yield farming rewards are distributed according to that delegation.
These rewards are a powerful motivating factor for liquidity providers.
Additionally, we just launched Sundae v3. Sundae v3 doesn’t deprecate Sundae v1, and both protocols will continue to operate indefinitely; however for market efficiency it would be healthy to see most liquidity migrate to the new protocol.
Yield farming is a powerful tool at our disposal to incentivize that migration.
Decision
We propose that the following changes be made to Sundae Yield Farming:
- The guaranteed 14% of emissions directed to pool 08 be directed to the v3 pool
2f36866691fa75a9aab66dec99f7cc2d297ca09e34d9ce68cde04773instead. - Only count delegations to v3 pools for the purposes of yield farming
- Remap delegations to certain v1 pools with large existing delegations to their v3 counterparts, specifically WMT, CLARITY, INDY, NMKR, FACT, and the USDM/iUSD pool.
- Increase the percentile threshold for rewards from 80% to 95% for 30 days, to cast a broader net for smaller pools to gain incentives
The poll options will be:
- Vote Yes to adopt the plan above on completion of this vote
- Vote No to leave yield farming rewards as they are
Are you interested in voting in an on-chain governance vote to this effect?
- Interested