[RFC] Extension of the liquidity program and addition of rewards

[aggre]

Summary

A proposal to extend the current liquidity program by three months and add a reward of 20,000 DEV.

Component Summary

• [Extension of the current liquidity program]: The liquidity program will not be interrupted until a new liquidity program can be designed.
• [Add Reward]: Add a reward to correct the lowered APY to a valid value.
• [Designing a new liquidity program]: I did not have enough resources to design a new liquidity program the last month. Therefore, after extending the current program, I would like to drive the design of a new liquidity program in a community-driven manner.

Motivation

The current liquidity program in operation started as a two-month limited period until we completed the design of the new liquidity program. However, even after a month and a half, I still haven’t secured the needed resources. Therefore, we would like to extend the current program and design a new liquidity program in a community-driven manner.

Details

We will extend the current liquidity program by 3 months and add 20,000 DEV rewards.

The end date after the update will be November 3rd. The expected APY after adding rewards is 63.5%, and monthly performance is 12.7%.

The new liquidity program is expected to be designed, voted, and developed within three months. The new liquidity program and the current program may run side by side for some time.

After writing an RFC on the new liquidity program, I will update this RFC.

This proposal is to be voted using the voting feature of the forum and will close the vote at UTC 1:00 August 19, 2021.

Agreed Collaborators

None

Missing Roles

None

Compensation

None

References

None

Vote

The end date is UTC 1:00 August 19, 2021.

• Agree
• Disagree
• Disagree the voting way

My estimate was incorrect, so I’ve opened a new vote below:

• Agree
• Disagree
• Disagree the voting way

[Rob]

I don’t quite understand how 63% apy translates into 21% per month aggre? I calculate it to be 5.25% (which for crypto is rather anemic).

20k Dev per month as opposed to 20k for three months may attract more interest.

[aggre]

I made a calculation based on the current specifications of Stakes.social, but your point is correct. However, the duration of the liquidity program is 2 + 3 = 5 months, and the monthly performance is 12.7%. Nevertheless, isn’t the APY gained over the whole period more important than the monthly performance?

If we base it on monthly performance, what percentage do you think is reasonable?

In Stakes.social, monthly performance is calculated based on a one-month ratio to the last allocation period (3 months). This is an error caused by Stakes.social not considering the extension of the liquidity program. We should fix it, but I would like to handle it as a separate topic.

[Rob]

Without being overly negative, it’s rather confusing for the average person.

An APY is simpler to understand but then I guess most won’t actually hold funds in there for a year, so a monthly % is easier to comprehend.

My point is the geyser seems to be getting diluted as time goes on. The original geyser was far more lucrative from a returns point of view - which ultimately is what attracts people to risking liquidity provision.

If we are blending the new geyser into a 5 month period I would propose a monthly % of 20%.

Whilst this may seem high it will be comparable to other geysers currently running elsewhere and will make ours equally as attractive to new investors.

[aggre]

Thank you, I understand your view!

Once close this topic, I’ll create a new proposal for adding rewards. Or you can even open it

[Rob]

Thanks Aggre. Keep up the good work. We’re all enjoying watching Dev Protocol grow.

[Midget_Gems]

I would agree with Rob that aiming for 20% a month is a reasonable target for the liquidity provision, this will of course have to be balanced proportional to the amount of total liquidity provided.