Remove rewards for V2 Pool and move them to sSCRT - SEFI LP pool

Hi,

This proposal removes all rewards for the SEFI Staking (V2) pool and adds them to the sSCRT - SEFI LP pool. The advantages of these greater rewards could increase the TVL between these two pairs. This is a vital pair in Earn and needs to be rewarded appropriately. SEFI stakers in the V2 pool will have the functionality of interacting with dapps in the future (lottery, etc.). This ensures that all functionality is NOT lost for V2 stakers. We must ask ourselves why we are incentivizing stakers who don’t lockup SEFI. 10 days isn’t a long time period when comparing it with the default lockup time period for Cosmos based projects. No pain = no gain. If current (V2) pool participants can’t commit to a 10-day lockup period, the resolve may not be there for those individuals. Therefore, I propose to move these rewards to the sSCRT - SEFI LP pool. Let’s stop incentivizing those with no skin/resolve in the game and let’s move the rewards to individuals who are strengthening LP pairs on Secret Swap.

By voting YES, you acknowledge that the proposal submission removes all rewards (10x multiplier) from the SEFI Staking (V2) pool, and moves these rewards to the sSCRT - SEFI pool. It would encourage more players to provide LP support on Secret Swap.

Thanks for your time,
Phil

3 Likes

Thank you for writing this post. I remain somewhat apprehensive about completely eliminating the V2 pool because it will likely cause hard feelings among those who don’t pay attention to governance/changes that much. Only a few days ago, a long-time community member expressed confusion in a tg channel as to why the V2 rewards were so down. Perhaps we could say that people should pay more attention (and they should) but if committed community members miss these things, then many more will too.

The bad feelings could cause some to dump and I’m kind of torn between:

(i) avoid this because sefi can only take so much dumpage and the V2 stakers probably aren’t selling their rewards so they probably aren’t currently hurting price, they probably just hodlers who aren’t paying much attention or really really want the lockup-free liquidity.

(ii) The V2 pool doesn’t really make any long-term sense so we should get rid of it at some point anyway and since we are basically at all-time-low in sefi/scrt ratio, we might as well rip off the bandaid. Anyway, like I said, I’m split between these two thoughts currently and haven’t decided how I will vote if it is put up for a proposition.

Thank you again Phil for engaging with governance and writing these forum posts! You make a lot of good points and I strongly agree with your choice of where the rewards should go in the event that we deprecate the V2 pool – The sSCRT-SEFI pool is exactly what needs to be the recipient of the next rewards move (especially considering that prop 34 is yet to be implemented).

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Thanks for sharing @VVega. I understand your points. (ii) resonates with my current state of mind. The price right now is irrelevant in my opinion. It’s low and we might as well build a strong foundation now. Some additional thoughts are as follows.

  • If you can’t hold SEFI for 10 days, you don’t believe in this project. 10 days is a short time period.
  • We don’t know a lot of details about V3. It could be next few months or it could be in the next few quarters. No guarantee of release date and we have very little information.
    • V2 holders will likely wait for a catalyst to dump SEFI.
    • I’m not 100% sure if tokenomics will change in the future (referring to the leak that was posted on the forum).
      • We should clean house now.
  • V2 poolers will have a chance to use their SEFI in future dapps (lottery, etc.)

Now is the time to make uncomfortable governance changes and shape the protocol in how we see fit.

Hello,

I think this is really good proposal and i can also think rewarding LP is a good thinking, but if we want commitment to the 10 days, giving more rewards would be valuable to the infinity pool. (I know 10 days are not much but…) Submitting more proposals to move people to Infinity Pool or giving some incentivitized periods time to time to infinity pool would maybe grow up the interest in SEFI locking up for longer periods.

Is it a possible mechanism to multiply staking rewards after every x days is possible? Like snapshotting every month for stakers if they staked whole month like milestones and share from a specificly created pool to them with their shares as bonus for commitment? Like getting some as of now 43x (Maybe half of it or lesser) to reward people who locked up for longer period by snapshotting and sharing as per their locked amount?

Thank you for keeping SEFI governance active Phil,
Regards,

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I think rewarding this SEFI to Lower TVL pools like IBC assets or a SEFI/UST pool makes way more sense than adding more to sSCRT-SEFI.

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Great points @Jarlaxle
I had something similar in mind when I posted proposal 21.

A tiered system where the lockup period would determine additional rewards. Less lock up time = less rewards.

Thank you

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Other IBC pools would be great, but I do think our strongest pair should be SCRT-SEFI. We need to make sure our TVL within this LP pair remains strong.