[FIP-005] - Extending Phase 4 Rewards

Phase 4 has been a great success, we have seen over 50% of BANK locked in the Genesis pool and, almost all the $FLOAT locked up accruing rewards in the FLOAT-ETH sLP pool and the FLOAT-only pool. As these first initial weeks of Phase 4 draw to a close, the core team has prepared a proposal for liquidity incentives for the next four to five weeks weeks:

For 5 weeks starting 13th of June 2021 10pm UTC, ending 18th of July 2021:

  • 320 BANK per week to Genesis BANK-only

  • 320 BANK per week to BANK-ETH sLP

For 4 weeks starting 13th of June 2021 1-pm UTC, ending 11th of July 2021:

  • 960 BANK per week to FLOAT-ETH sLP
  • 80 BANK per week to FLOAT-only

As an example, the current APY for the FLOAT-only pool is ~66%. These changes would result in an APY of ~46% for the FLOAT-only pool if the total amount staked remains constant. Similarly, if BANK and the market recovers to the previous 2-month average BANK price ($448), the Genesis BANK-only pool APY could be at ~100%, with the proposed rewards and no change in the amount staked. So far the reward incentives have turned out to be fairly lucrative to stakers. We hope that we can continue to grow at an organic and sustainable pace while still rewarding those who support us along our journey over the long term.

We plan to continue rewarding stakers with BANK and slowly reduce the distribution as we obtain more integrations and diversify our treasury :eyes: .

https://snapshot.org/#/snapshot.floatprotocol.eth

In case people are curious about why we chose these timelines. In order to re-use the existing contracts we have the following limitations:

  • BANK-only / BANK-ETH sLP must run on a 5 week cycle.
  • FLOAT-only / FLOAT-ETH sLP must run on a 4 week cycle.
  • Contracts must be ready and deployed before mid-day 11th. If we want to do something more interesting we need time to audit any new contract changes.

Snapshot voted passed :white_check_mark:
Screenshot from 2021-06-13 01-48-25