[FIP-003] - End Phase 2 and introduce Phase 3

End Phase 2 and introduce Phase 3 - Proposal

Proposal in short

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.

Reasoning

After a good Phase 1, which achieved a wide participation and a strong community, Phase 2 had two aims according to the team:

  1. Distribute the token widely across the DeFi community
  2. 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.

Supporting Research

This is a list of the largest farmers from each pool.

  • :robot: means they’re a smart contract.

  • :whale: means they’re an EOA.

  • :bank: means they hold bank in their wallet.

  • :imp: 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:

Proposal

  • 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.
7 Likes

This was needed. We don’t want to undo all the work of Phase 1.

1 Like

Great research :clap::clap::clap::clap:

This confirms what we thought. Phase 2 was distribution by the market but with the profit going to whales rather than the Protocol or holders.

This needs to be fixed!!! lol

I agree, but the team seemed pretty sticky on the plans - the high TVL brought them a lot of attention. Will the team support this?

I like the proposal and would love to had this implemented before Phase 2 started. But now its too late imho, ending Phase 2 earlier then “advertised” would be a marketing disaster.
Not for the whales, but because of the countless little famers that were not whitelisted and eager to farm, asking again and again in Discord/Telegram. Yes they will hardly break even on gas fees. Yes they will not make any money farming BANK. But they will complain a lot and call this a scam over and over if you take their potential 50$ farming rewards away, I gurantee you 100% thats how people tick.

I am shure if the team sees traction here that they will support the proposal. Personally, I’m in favour

2 Likes

But they’re not making anything atm as you say. Most are crowded out by the big guys. And, they can just participate in the BANK-ETH pool.

For any holders, this is gr8 for price (price is not everyting but like it is a good way to value the project)

1 Like

Firstly, I don’t believe altering plans already set in motion regarding the conclusion of Phase 2 should be considered. Like Voidberg, I think it would be bad for optics as it would only retroactively implement a means of diminishing the “damage” done by autofarmers. I’d like for us to consider keeping the current Phase 2 end date, but possibly then starting a Phase 3 using a fixed amount each week but having the first minting ceremony be the cut-off for its conclusion.

Floating all the way to the BANK, amirite?

If the autofarmers are selling down the price then they are, in effect, providing at least one kind of opening for minnows: cheap BANK :slight_smile:.

but it’s such a stupid way to distribute. why not just airdrop to the little guy

These guys are still getting rewarded just for one week not 2 and more rewards are given to people that are contributing I disagree.

To echo the sentiment of others I think ending earlier than advertised would not be advisable for all the clear PR reasons. However a phase 3 that focuses on the BANK - ETH LP would be something worthy of support. There is hopefully just a two week gap between the minting ceremony and the end of phase 2. There’s a chance it could go longer. What I’d be more interested in is a 4-6 week LP rewards program post phase 2 that brings us through the minting. The BANK for this would likely need to be allocated from the 35% of the 168k for post launch incentives and partnerships.

Alternatively governance could commission research to identify the smaller folks in the single asset books as well as the non-bot, non-vault LPers and post hoc airdrop those wallets some amount of BANK. This would also likely need to come out of the post launch funds, but could potentially be cheaper than a prolonged liquidity farming program. Additionally this would theoretically continue the aims of Phase 1 in terms of getting BANK into a broader set of hands for a more diverse set of holders.

what do you mean PR reasons? You’re worried Banteg would be annoyed he can’t get his free BANK?

This helps LP providers, this helps holders, this helps small guys trying to get involved and get some free BANK

In fact it’s not ending earlier one more phase added that lasts longer

Oui, exactly this thought

Makes sense. Lets do this before everything disappears

It’s making an aspect of this last longer. Generally I think it’s bad to commit to things and then move the goal posts. I’m not concerned about whether the whales keep hoovering rewards or not, I’m worried about the people who spent a decent chunk on gas, are getting fewer rewards than they thought they would due to the problems this post describes who now will have to spend more gas to exit early potentially not even breaking even. Changing the set up like this doesn’t really matter for the big players but I’d be curious to know how many wallets in phase 2 are comprised of those who are kinda getting hosed right now.

Now the team decided on this not us. We the users have not committed to anything .Democratic launch democratic protocol we can make a vote and if it passes should be implemented.

2 Likes

This is well sayd. But Im sure holders will do more good hodling bank than with no dumping than the powderpuff-farm