“Feels a little bit rushy: creat onchain vote right after creat topic”.
It is, but someone started a fire last night & the longer we’ll let it burn the bigger the damege will be.
I think that one of the lessons from this shitshow is we (as a community) will need to formalize how proposales should be disscussed & afterwards submited.
“Current rewards structure creates inadequate returns, CVP oversupply and deflates the value of CVP` , right?”
I think there is another layer here, some thing none of us expected when we voted on proposal 6.
It seems oversupply of CVP has a negative affect on the project cure products, the indexes.
How the fuck someone can think its a good idea leaving this situation unchanged for the next 12 month is unclear to me.
I am very much in favor of this proposal. This proposal will reduce inflation by over 700K CVP next month compared to Proposal 15 Version 2/3, which is a lot! Current rewards are very high, and I don’t believe we’ll see any significant drop in TVL if this passes since yields will still be very competitive.
And with reduced inflation (rewards), price might recover wich will porbaly offset part of the APY drop, we’ll just need to wait and see…
And BTW in real termes the APY is a lot “higher” than it seems.
Curently the price is ~1.8$ it was 3.9$ at 11/12 so APY basicaly 1.5x-2x higher in real terms.
@powerpoolAdmin or @DrGonzo can provide the DATA about RCS ,real circulating suplly (circulating suplly - vested token), & APY per day (even better if we can get per hour or block BC we’ll have more data points)?
It will help us gain some insghts on how APY, RCS & price interacting with each other.
Just writing it for future discussions…
It seems we stoped the bleeding (at least for now), bear in mind some of the rewards are still in vesting period we’ll need to keep watching how it will paly out.
But CVP stopped dragging the indexes (PIPT & YETI) down.
IMO although reducing rewards has it cons its lethal to have +400% APY when some projects offer +20,000% APY ATM (+400% mining rewards is not close to be enough of incentive).
The only outcome in this situation is a negative feedback loop.
January is almost over so we need to get rewards renewed! Here are my recommendations:
CVP/ETH - Setup 91K CVP per week (consistent with current yield) in February
PIPT - Setup 300K CVP for February
YETI - Setup 175K CVP for February
I think CVP/ETH rewards should remain unchanged for at least 6 months, so I didn’t propose any changes there. For PIPT and YETI I recommend reducing rewards proportionately with the original schedule released for PIPT (proposed numbers rounded to be nice and even).
I could see an argument for reducing rewards slightly further to offset increased inflation due to rewards from ASSY. We could possibly trim another 50K-100K CVP out of this renewal proposal while still offering generous yields. For example YETI is yielding 250% at the moment, so even cutting rewards in half (or slightly more) would still offer a great return.
I completely agree with this. Im a YETI staker but the APY is too high.
Something we could change here is that you need to stake CVP to get any yield at all, like the assy pool is working. I would even start with the same rule so we have 1 rule for all pools and if we change that rule its applied to all the index liquidity mining programs (how many CVP you need to stake to earn rewards and the more you stake the more rewards you get).
That would be another advantage for the XCVP im proposing in another proposal. Only people who have skin in the game earn CVP rewards. Everyone else is just a token holder and if the person wants to farm yield they can go to the sushiswap onsen program as example.
No, i would just implement the same rule as we are having for the ASSY pool right now. Small yield without and the more you stake the more yield you will get. Then we dont have to define a complete new rule set right now.
But in the long run i would change that to 0 rewards to non cvp holders. But for that we should define 1 ruleset that works for all liquidity mining programs that we dont have different ones for different pools.
I like this idea and I agree in the mid to long term requiring cvp for any yield seems very beneficial for the cvp-nomics.
ASSY pool has demonstrated that people are willing to buy cvp (that they may not have) for a higher yield. And as you suggest this works with the XCVP proposal.
I would suggest YETI pool even 150k for February. I.e., half of what it is now (300k). I would then suggest the CVP/ETH pool is increased for selfish reasons - the IL on this has been ridiculous unfortunately. Maybe to 120k
I like the idea of adding the CVP boost to other pools but I think that’s worth a separate discussion just in the interest of time - I would hate to see rewards on current pools lapse right now.
@125125 I appreciate the honesty in your reasoning ( ) but I don’t think we can justify increasing CVP/ETH rewards right now. At 200% APY your earned rewards will equal your principal in about half of a year. Rewards on this pool will likely stick around for a while to support CVP liquidity, so I wouldn’t get too hung up on making a knee-jerk reaction to short-term volatility.
Reducing YETI rewards by 50% to 150K/month would put the Balancer LM returns at 115% APY based on current yields which still seems like a great return, so I’m supportive of that number.
I’d be curious to hear more thoughts about PIPT rewards. The Index COOP DPI farm has retained $50M in TVL despite only offering ~30% APY right now. Based on this I’m convinced we could drop PIPT rewards by 50% to 250K/month without seeing a big drop in TVL. Anecdotally I feel like January’s reward reduction didn’t cause people to exit the pool (though it’s hard to conclusively say due to price volatility, people taking profits, ASSY launch, etc.).
I agree lets get this proposal out there. I am lp too its definitely pretty bad, barely getting an fees for being an lp and impermanent loss is crazy, cvp is doing terribly against eth.
That being said i am fine if rewards stay the same i hope that cvp will perform and make up for this.
Im also in pipt pool and yes i would be fine with the 50% cut. Same 50% cut for yeti too.
If we don’t get this out there and voted on we will end up with 0 rewards.
We have waiting for more community opinions on this issue but it hasn’t really happened so guys i think its time to push this proposal to voting now.
50% cut for pipt pool so it becomes 250K/month and yeti pool so it becomes 150K/month. And same 91K/month for cvp/eth uniswap pool.
I’m ok even with slightly more of a cut to pipt and yeti rewards. But perhaps that’s something we can consider next month along with the boosted program but we are really short on time so. Can someone with enough cvp push through a proposal?
) but I don’t think we can justify increasing CVP/ETH rewards right now. At 200% APY your earned rewards will equal your principal in about half of a year. Rewards on this pool will likely stick around for a while to support CVP liquidity, so I wouldn’t get too hung up on making a knee-jerk reaction to short-term volatility.