Float Protocol has continued to distribute BANK to the community since the beginning of our democratic launch in early February 2021. As Phase 4 (II) is drawing to a close we thought it best to re-evaluate the pools, and their respective rewards going forward, especially considering FLOAT has now been in circulation for almost 10 weeks. The auctions have seen recent uptake in participation with bots now roaming the scenes and taking profit where they can. Liquidity is an important factor for the functioning of the Protocol such that traders can arb the auctions, let us discuss how to reward both BANKsters, FLOATers and liquidity providers alike.
Following discussions with the Community on Telegram and the #governance channel on Discord, below is a summary of points made alongside some other ideas from the core team:
- Prioritise liquidity provider pool rewards, and rank them in terms of asset volatility
- Keep BANK-ETH going
- Keep FLOAT-ETH going
- Potentially dual rewards for FLOAT-ETH n.b. FLOAT-ETH will first have to get on Sushi Onsen
- Introduce a new FLOAT-usd e.g. FLOAT-FRAX, FLOAT-USDC… pool
- Can be done via a Uniswap v3 + Gelato
- Could bring new people to the FLOAT ecosystem and aid price stability
- Exchange the Genesis BANK pool for a BANK-only pool with different lock ups and incentives.
- N.B. Some have asked to scrap the Genesis BANK-only pool completely.
- There is the danger that removing it completely could lead to large short term volatility in BANK
- Replace the FLOAT-only pool with a FLOAT-usd pair pool
let FLOAT float freely
- a fellow Community rockstar
- Gradually decrease the rewards overall such that the Protocol has enough BANK to incentivise partnerships with other platforms but make sure the rewards are juicy enough to still reward long term supporters of the Protocol in the meantime.
The core team are leaning towards the following set up:
- BANK-ETH (with dual rewards, Sushi)
- FLOAT-FRAX via Uniswap v3
It would be great to hear thoughts from the Community on what the rewards and pools should be going forward.
Move to vote on Snapshot: Snapshot