End Phase 2 at the end of this week (Sunday 28th March 10pm UTC) and introduce Phase 3, removing all pools except the incentivised BANK-ETH SLP. All rewards from the second week of Phase 2 are to be distributed only to the BANK-ETH SLP over 6 weeks.
After a good Phase 1, which achieved a wide participation and a strong community, Phase 2 had two aims according to the team:
- Distribute the token widely across the DeFi community
- Create a deep BANK-ETH pool for use in Float Protocol’s stabilisation auctions.
Phase 2 does currently distribute the token, however the market is being used as the main distribution mechanism, with the big players currently farming being well-paid brokers.
The Phase 2 aims would be better achieved if the LP providers were rewarded to a greater extent instead of pools where big players take up all the rewards.
The team said that the Protocol will launch a few weeks after Phase 2, but we know that audits etc always take longer so extending the BANK-ETH LP pool incentives should keep the LP strong until then is important.
This is a list of the largest farmers from each pool.
means they’re a smart contract.
means they’re an EOA.
means they hold bank in their wallet.
means they don’t hold bank.
Red means they are selling (they control - earned or hold - less than they could potentially have earned).
Green means they are buying or holding from Phase 1 or haven’t sold anything.
The format of the entries:
rank. indicatorsaddress: potential_earnings<= bankControlled
As you can see, the large majority are farming aggressively, collecting all the rewards and dumping immediately. The distribution is also very centralised by Vaults and whales as the top 10 wallets in each pool are farming the large majority of the rewards (for instance, in the Sushi pool, the top 10 are 80% of the pool)
As we know, some major Vaults are farming:
- We end Phase 2 this Sunday 28th March at 10pm UTC (I believe the pools are seeded a week ahead so it is impossible to end it before then). This should stop the aggressive farming and dumping practices happening currently.
- We introduce Phase 3, starting Sunday 28th March at 10pm UTC and lasting 6 weeks.
- Phase 3 lasts six weeks and there is only an incentivised BANK-ETH SLP.
- The rewards for the incentivised BANK-ETH SLP will be as follows:
- Week 1 (commencing Sunday 28th March) - 3000 BANK
- Week 2 (commencing Sunday 4th April) - 2500 BANK
- Week 3 (commencing Sunday 11th April) - 2000 BANK
- Week 4 (commencing Sunday 18th April) - 1500 BANK
- Week 5 (commencing Sunday 25th April) - 1000 BANK
- Week 6 (commencing Sunday 2nd May) - 500 BANK
- This should incentivise a fairer distribution of BANK moving forward.