[TIP-10] Extension of LP Rewards & Updating of Pool Weights



  • As the first phase of LP rewards are ending, we're proposing the following extensions:

    • Extend LP rewards to 30% of inflation value for 6 months, decreasing linearly each week to 20% for the last week.
    • Change commitment boost to a max of 1 month for a 2x boost.

    We're also proposing the following reward weightage adjustments, at the same time as the change in rewards, as most LPs should have their stakes unlocked by then:
    4x SWTH-20-ETH-80
    4x SWTH-20-USDC-80
    1x ETH-50-WBTC-50
    2x ETH-50-USDC-50
    2x WBTC-50-USDC-50
    0x CEL-50-USDC-50
    0x NEX-50-USDC-50
    0x nNEO-50-USDC-50

    In line with the sunsetting of the legacy Switcheo Exchange, we propose incentivizing the following pools (and listing the corresponding markets), so that we can have sufficiently liquid books to migrate existing users:
    1x nNEO-50-ETH-50
    1x nNEO-50-GAS-50
    1x nNEX-50-nNEO (NEP-5 variant of NEX, pending custom lockproxy contract)

    Once the BSC integration is complete, we propose incentivizing the following pools (and listing the corresponding markets) as a low cost way for users to onboard onto Switcheo TradeHub.
    1x nNEO-50-BUSD-50
    1x CEL-50-BUSD-50
    2x SWTH-50-BUSD-50
    1x WBTC-50-BTCB-50
    1x BUSD-50-USDC-50

    Please let us know your thoughts. We'll like to have the final on-chain proposal out and voted on before the end of the current reward epoch (~1 week from now).

    EDITS:

    • Added 1x BUSD-50-USDC-50 pair
    • Changed SWTH-50-BTC-50 to WBTC-50-BTC-50
    • Changed reward emission from flat 15% to 30% and decreasing to 20%
    • Increased SWTH-50-BUSD-50 from 1x to 2x


  • @ravenxce said in [TIP-10] Extension of LP Rewards & Updating of Pool Weights:

    Once the BSC integration is complete, we propose incentivizing the following pools (and listing the corresponding markets) as a low cost way for users to onboard onto Switcheo TradeHub.
    1x nNEO-50-BUSD-50
    1x CEL-50-BUSD-50
    1x SWTH-50-BUSD-50
    1x SWTH-50-BTCB-50

    We already disscussed about a BUSD - USDC market to switch between the stable coins. Maybe more opinions are required.



  • BUSD-USDC market is needed for sure, full support on the rest from our side!



  • Missed that. Added the busd-usdc.

    Also changed swth-btcb to wbtc-btcb as it's potentially more useful. What are your thoughts?



  • @Devel484 - Agreed, this would especially useful for those that have already onboarded USDC into Tradehub for staking and trading. Reduces friction to the new BUSD pairs.



  • @ravenxce agree on change to wbtc-btcb



  • @acidbird - yes, increases our utility as a gateway (ramp?) into BSC



  • @ravenxce What would be the pros and cons of listing BNB also? BNB/SWTH and BNB/ETH would be cool as most BSC users are using BNB as a baseline currency. Cons might be that we want to promote as much BUSD volume as possible and this would take away from that?



  • I like the idea of adding new markets, but we should stick to a few markets to get liquidity. The BNB markets could get us some traction.

    My personal opinion is to increase the rewards for LPs. We are in an early state where liquidity is very important. I am fine with 30% as we already had.



  • Yeah, maybe for the best to focus liquidity (bootstrap) on BUSD at the time being, and expand to BNB further along the line when things progress a bit.



  • n * 0 = 0 so boost coefficient can't be 0

    Also if SWTH-20-USDC-80 pair has an 80/20 ratio the same ratio should be on SWTH-50-BUSD-50



  • @Devel484 said in [TIP-10] Extension of LP Rewards & Updating of Pool Weights:

    I like the idea of adding new markets, but we should stick to a few markets to get liquidity. The BNB markets could get us some traction.

    My personal opinion is to increase the rewards for LPs. We are in an early state where liquidity is very important. I am fine with 30% as we already had.

    I support we retain LPs rewards at 30%. In these days of high % LP rewards in the crypto space, our LPs should be competitive and attractive to attract Liquidity Providers. To bootstrap Demex, and list many pairs will really need enough liquidity. Bear in mind that if the new LPs are not well incentivized we run the risk of losing even the liquidity we currently have.



  • @Deeppee Agree. I would also prefer a 80 BUSD / 20 SWTH pair like we have done with the current USD / SWTH pair. would not like to take a 50% IL risk on any type of (B)USD(C). Especially not when rewards are lower and risk % are higher to lose USD value.



  • I am also in favour of keeping LP rewards at 30%, or maybe start at 30% and steadily decrease them to, say 15%. I think this will allow us to compete with other platforms particularly now that we have more pools to incentivise (besides, the high yield may serve as a good form of advertising).



  • @padzank We'll likely have a SWTH-BNB pair on PCS, so may not be useful. I agree with having a BNB pair somewhere though.



  • @jcbisso Makes sense. We can try to go for a 30% -> 20% over 6 months if we want higher incentives.



  • @ravenxce oh yeah, never thought about it that way. So i guess bnb/eth pair would make most sense as it promotes our crosschain capabilities and make us the best gateway for bsc/eth conversion



  • I'm supporting 30% reward to attract LPs capital, and also 3x rewards for CEL pair, the too pair for legacy exchange before we lose this pair as well



  • @ravenxce said in [TIP-10] Extension of LP Rewards & Updating of Pool Weights:

    In line with the sunsetting of the legacy Switcheo Exchange, we propose incentivizing the following pools (and listing the corresponding markets), so that we can have sufficiently liquid books to migrate existing users:

    Would that mean CEL-ETH as well? Currently most important eth pair on switcheo exchange.



  • @padzank Yeah had wished for the same. If only for the idea that it can improved our relationship with Binance and their community by promoting this trough social media. Was hoping to attract more BNB investors to our DEX with just one BNB pair.


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