Update Yield Farming Threshold Parameter from 80th to 99th percentile with additional requirements

Temperature Check
1

We propose to change the Sundae token reward threshold from 80th percentile to 99th percentile to distribute Yield Farming (YF) rewards across a wider range of Liquidity Pools (LPs). Pools above the 85th percentile of all pools must fulfil the additional requirements of having at least one token of the allow-list and sufficient TVL (see below). The total daily YF emissions have fixed amount, therefore proposed changes result in a change of reward distribution, not in a change of Sundae token emission quantity.

Sundae token Policy ID: 9a9693a9a37912a5097918f97918d15240c92ab729a0b7c4aa144d77

Justification

Certain LPs gathered strong support in terms of Sundae Community Delegation and TVL, though
they still cannot cross the threshold to be eligible for YF rewards. At the time of writing, the total of 7 LPs is receiving YF rewards in terms of Sundae reward program. The change of the reward threshold to 99th percentile would (at this point) make additional 4 LPs eligible for rewards. The broadening of eligible range could further motivate redistribution of Community Delegation, potentially increasing the amount of LPs with YF program and thus attract additional TVL. Measures to prevent abuse of the relaxed rules are included.

Changes

  • Rewards threshold to be changed to 99th percentile from 80th percentile.
  • Adding an allowlist consisting of ADA, USDM, DJED and iUSD. Any pool above the 85th percentile of all pools must have one of these assets to receive rewards and at least 50k ADA or equivalent in Total Value Locked.

Summary

  1. Vote No Change to make no change to the parameters of the Sundae YF program.
  2. Vote YES to adjust the pool rewards threshold and institute the additional requirements as described above.

Conclusion

Please indicate below whether you would like to see an on-chain vote for this proposal. Per the governance procedures, once we receive 20 “Interested” votes, we will create the on-chain proposal for voting.

Proceed to governance vote?
  • Interested
  • Not interested
0 voters
2

Looks good!

A few notes:

  • Can we change the language from “and TVL > 50k ADA” to “and at least 50k ADA or equivalent in Total Value Locked”
  • Can we adjust the phrasing on the second item in “Summary” to “Vote YES to adjust the pool rewards threshold and institute the additional requirements as described above.”; this will ensure the choice itself is short (just “YES”), while still providing clarity on what you’re voting yes on.

Also note that you don’t actually need a “Not interested” item on your poll; the only thing that matters is 20 “Interested” votes. It’s just a spam filter, not an actual vote on the proposal itself, and having a “Not Interested” option may give the wrong impression that people are meant to be voting on the proposal here, rather than once it goes on-chain.

2 Likes
3

Thank you for the feedback Pi, I edited as proposed and added the clarification about fixed daily emissions. IMO the redistribution will be minimal compared to the current one considering the small delegation percentages of those additional pools. I wonder whether this is really the main concern of people not in favor. Would be great to hear some voices here.

1 Like
4

Also add SUNDAE as a policy

1 Like
5

Can you please be more specific what do you mean? I added token Policy ID but maybe you meant including Sundae in the allowlist? I am not really sure why would that be beneficial.