Sundae Yield Farming v2 parameters update has launched successfully and is in full swing. With ADA-SUNDAE receiving 57.28% of the vote,ADA-INDYreceiving 20.27% of the vote and ADA-WMT receiving 15.32% of the vote.
This has resulted in only delegation with more than 15% is eligible for rewards and makes it hard for a 3rd pool outside of ADA-SUNDAE to be eligible as ADA-SUNDAE has all the self interest to vote for its own pool.
We propose a small changes to the settings of the yield farming program, to be enacted 3 business days after the conclusion of this vote, which will allow other pools to begin earning rewards, encourage ADA-SUNDAE holders to vote outside of own pool and attract liquidity to the DEX as the program is intended to do.
Summary
We considered and discussed many options with the community, and filtered it down to a few popular options below:
Vote No Change to make no change to the current operation of the program
Vote Adjust pool rewards threshold to 95th percentile to adjust the algorithm to select the top 95th percentile of pools, rather than the top 80th percentile of pools.
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
This is a great idea and one I hope the DAO will embrace. V2 is a great system and design in theory but in practice it just needs some tweaks to maintain competitive integrity with other DEXes. Right now needing 20% of delegating power to qualify a pool for rewards is an insanely high barrier to entry and is essentially impossible for any project that isn’t VERY heavy invested in SUNDAE. Reducing the requirement down to 5% delegation power is so much more achievable and allows new up-and-coming tokens with new hype, TVL, and liquidity into the SUNDAE system to flourish. I think it’s also worth mentioning that the very recent rise in competing DEX Aggregators will greatly benefit SUNDAE volume as these aggregators direct orders through SUNDAE.
Bear in mind I don’t think this is the end all be all solution as well.
it is just something that the team might be able to rally behind it.
A short term fix that might work for a couple months.
Voiced other factors pertaining to delegation rights and incentives for Sundae holders in previous temp check that gotten 19 votes.
Thanks for posting this, I like your proposed change because I agree more pools should be eligible to earn rewards. The only issue I still see is that INDY, SUNDAE, and WMT will likely still be the only pools receiving rewards if implemented since they are the most popular pools. I think the question we should all be asking ourselves is whether SUNDAE LPers on average are selfish – meaning do they delegate to the pools that will earn the most rewards or do they delegate to pools that deserve/need rewards? I would think the former. I think the best solution mentioned so far to fix the delegation issue is to remove the ability to delegate to the SUNDAE pool and offer a fixed APR or something equivalent.
It’s simply users maximising individual rewards.
The most optimal reward is actually 100% delegation to sundae/ada. In this way you minimise capital outlay while maximising returns.
I did make another proposal that finally got to 20 vote and onchain.
While in their arguments , portraying themselves to care about the value of the token. Therefore insisting that LP to purchase sundae(which goes into loop of maximising sundae return) this has ended up in Shen djed iusd not able to sustain any farm. And now labelling LP as mercenary.
A exchange Long term value is having the dex do well in attracting Liquidity providers and trade volume. And translate that value into sundae value through fees or other revenue.
Sundae holders need to align with growing tvl,Not growing emission for themselves