Proposal 20: Re-define rewards for PIPT, YETI and CVP-ETH

Proposals
#1

Proposal 20: Re-define rewards for PIPT, YETI and CVP-ETH
DISCLAIMER: it is a draft for discussion. But, since the topic is urgent I want to move it to voting in 48 hrs, so let’s hurry up.

This proposal is aimed to make rewards allocation more efficient and limit CVP inflation.
Also, its necessity is also based on the fact that YETI rewards should be updated every month.

Summary

  1. Eliminate YETI-ETH Balancer rewards
  2. Decrease YETI staking rewards from 0.83 CVP/block to 0.5 CVP/block
  3. Move PIPT-ETH liquidity from Balancer to Sushiswap and keep the same rewards as now for PIPT-ETH
  4. Decrease PIPT staking rewards by 50% (from 1.09 to 0.545 CVP/block)
  5. Keep CVP-ETH Uniswap reward the same as before

YETI February rewards.
Eliminate rewards for YETI-ETH Balancer pool since YETI has ETH pair on Sushiswap, which is supported by the Sushi Onsen program.
Rationale: YETI is traded at Balancer (CVP incentivized pair) and on Sushi. Trading volume for YETI last 24 hrs: on Balancer was $42k and $29k on Sushi. It is completely not efficient to pay 132k CVP per month - $310,000 for such a pair? Obviously not.

Decrease YETI staking from 0.83 CVP/block to 0.5 CVP/block decreasing rewards by 40%

In total it will decrease CVP inflation by approximately 196k CVP per month or $461,000 future selling pressure based on current prices.

PIPT rewards
My opinion is that we should provide more rewards to the secondary market, and move the secondary market itself to Sushiswap. It will enable an option to swap PIPT<->YETI<->ASSY via smart routing. So:

  1. decrease rewards for PIPT staking by 50% (from 1.09 to 0.545). My opinion is that passive holding of an index shouldn’t be rewarded by almost 100% APY.
  2. More incentivized liquidity pair to Sushiswap
  3. Allocate the same reward as PIPT-ETH Balancer to Sushiswap

CVP-ETH rewards

My suggestion is to keep rewards the same. CVP-ETH liquidity providers face serious IL right now and are the most loyal LPs in the community.

8 Likes
Proposal 16: Reduce the mining rewards for all pools by ~50% for the next month
#2

Completely agree, lets go with this. And lets discuss the tokenomics of the index tokens for the future if that proposal has passed. Thanks for your work!

#3

Agree with TS, rewards pretty high, CVP keeps its price but there is 2 much pressure from sellers. We need to decrease this pressure but keep high APY at the same time

#4

I have one addition, maybe set this rewards “until we a have better solution” so we dont have this problem next month again.

1 Like
#5

Totally support the idea, especially redesign of secondary market reward structure.

#6

Maybe a dumb question, but does staking indexes provide any value? In other words, what benefit does PowerPool get from people staking PIPT or YETI directly (without providing liquidity on Balancer)? Just wondering why we want to continue offering rewards there.

Very much in favor of this proposal! Consolidating and migrating liquidity to Sushi and leveraging Onsen seems like a very cost-effective solution.

#7

I am totally for this!

#8

Basically, its just to avoid secondary market buy/sells cuz secondary market often gives “unfair” price which is usually higher then in index. Plus, minting tokens from index gives additional fees to community and raises tvl of index. Higher TVL - more voting power, CVP is more valuable and PIPT/YETI/ASSY consequently. So its better to mint through pool and stake in pool.

1 Like
#9

Thank you for the write up. FOR this proposal.

#10

Everyone is for it, lets get it to mainnet asap!

1 Like
#11

Indexes generate cashflows based on TVL: entry fee/exit fee/swap fee https://etherscan.io/address/0xD132973EaEbBd6d7ca7b88e9170f2CCA058de430

Almost $300k, and all this money will go to CVP holders (but we need to define rules for that).
Of course, CVP rewards are much bigger in $ than treasury growth. I think it is for bootstrap, and in the future, we will completely remove rewards for pure staking.

1 Like
#12

Is there a reason for pure indexes staking rewards? Are we gonna do smth with them? I’m for this prop, of course!

#13

Completely agree. Do it :slight_smile:

#14

makes total sense, for this.

#15

Excited for the proposal to go in place.

Im trying to figure out what total cvp tokens that will enter the market from this proposal. How do u calculate what the cvp/month will be for each pool? If pipt staking rewards becomes 0.545 cvp/block, how many blocks will there be in a month? Is it referring to the 15 second Ethereum blocks?

Edit: Calculated according to Vasily’s block number 195,000 blocks/month:
Cvp-eth pool -> 91k cvp/month
Pipt/eth -> 0 since they are rewarded in sushi
Pipt staking -> 106,275 cvp/month
Yeti staking-> 97,500 cvp/month

#16

6500 blocks/day, 195,000 blocks a month (considering that 1 month = 30 days)

1 Like
#17

Wow. Moving liquidity from Balancer to Sushiswap - disagree. With such commissions on the network - to drive liquidity from pool to pool, what will it cost users!
:pensive:
Can split the offer into several separate ones!

#18

FOR this of course,

Thanks Vasily for putting this together

1 Like
#19

I am FOR this proposal

#20

plz vote here ->
https://app.powerpool.finance/#/mainnet/proposal/4?governor=0x1872b9692bd7ceabbefd30e40b03c548a9d79261

14 hours left :slight_smile: