SEFI Rewards changes

Hey all,

Following this post: SEFI Executive Committee Meeting #1 and the decisions laid out there, the SEFI EC has iterated on a new reward scheme which is outlined below:

Increases in rewards and new pools:

  • SEFI-XMR pool will receive 5.5% of the rewards - a relatively high number that should attract strong liquidity. We do expect this to be reduced in several weeks time to be more in line with other pools.
  • A new SEFI-USDC pool will receive 5.5% of the rewards as well. This should put SEFI in a more autonomous position, with its own liquidity that isn’t tied to SCRT (and therefore allow better access to it and an easier way to individually increase in value).
  • ETH-ETH (BSC) rewards are slightly increased and a new USDC - USDC (BSC) pool is introduced with 5.5% of the rewards. We believe this allows a better way to privately move ETH/USDC cross-chain, helping to solidify SN/Secret Swap as an important cross-chain tool. We also hope this would increase overall TVL (we will monitor this).

To make room for these new pools and increased rewards above, some pool rewards has to be decreased. Most of these come from reducing Cashback, which had large community support. The rest comes from carefully rebalancing rewards, within the EC’s discretionary ~20% allocation.

Decreases in rewards:

  • Per the on-chain governance decision, Cashback rewards are reduced from 10% to 0.5% (essentially disabling it). We will measure and see if this affects trading volume going forward. This is the biggest change overall.
  • SCRT-SEFI pool is reduced by to ~14%, which is about a 25% reduction of its rewards and SEFI staking is reduced to 10% which is a minor reduction of about 10% of its rewards. These are meant to create room for the new SEFI pools mentioned above, without making these existing pools unattractive.
  • Minor changes to smaller tokens pools (e.g., Link, Rune, RSR, etc…), again to create some more room for more interesting pools

New rewards will go into effect tomorrow, Thursday, August 19.

Feel free to leave feedback. We’re excited these would boost SEFI, XMR and overall TVL in SecretSwap!