It’s becoming more clear from the recent price movement that SEFI as a protocol is not set up with the right incentives to benefit the HODLRs. In anticipation of governance roll out I’m putting out some items which I plan to propose:
Cut cashback down from 10% to 1%. Being rewarded for trading is a nice touch, we don’t need it be a very large part of all rewards. Free coins are being dumped, and treated as a discount on their purchases. “Cashback” almost implies it. We need to give people just enough to get a taste, but not enough it moves the needle on their purchase decisions. The rewards are likely all accruing to arb traders, not average joe users making a simple swap every so often.
Replace all SCRT-XYZ LP earn rewards with SEFI-XYZ LP earn rewards. If free coins are being given out, we need to ensure the users receiving them are invested in the protocol. How do we ensure this? By forcing them to HODL and be invested with the rest of the users. Rewarding people with SEFI, when they do not need to hold any is a perverse incentive. These free coins are being dumped.
Exit LP Fees. People threw out some high figures in the chat, but 5-10bps feels right if we must select one number. We could implement a curve 0 to 6 months than scales down from 30bps to 0bps. This is to encourage users to LP for the longer term.
Buyback. In addition to the above Exit LP Fees, we will take 5bps of all LP fees collected and buy back SEFI. Ideally this should be distributed to HODLrs, but I’m not anti-burn.
There was a lot of excitment months ago about building out features to SecetSwap. We should make a list of the things we want to see added to the protocol. Please add below, share thoughts of what you would like to see done when we get Gov.
- Order Book
- Yield Aggregator
- __________________ - Your Answer