Adjust Unclaimed INDY rewards allocation

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Overview

Unclaimed INDY rewards accumulate over time and the DAO can choose where those unclaimed rewards go. Currently those rewards are split between the largest ADA/INDY pools on MinSwap V2 and SundaeSwap V3. Unfortunately the largest pool on Sundae V3 was created by an unknown user who did not set a “Fee Manager” for that pool. That means the 0.3% fee can never be changed. Not even by the original pool creator. Having a fee manager for a liquidity pool means that person or group can set different fees for buy orders and sell orders or even employ a third party fee optimizer. This has the advantage of maximizing value for the liquidity provider and being flexible to a variety of market conditions.

History

The first time the DAO voted to allocate unclaimed INDY rewards was in proposal 18 Indigo Protocol. Then proposal 18 was amended by proposal 48 Indigo Protocol to include the Sundae V3 ADA/INDY pool that is currently receiving half of the unclaimed INDY rewards.

Objective

Incentivize liquidity migration to a new ADA/INDY pool on Sundae V3 that has a fee manager set by the Indigo PWG. The fees for this new pool are currently set to 0.3% for buy orders and 1% for sell orders. Ideally this set of fees will generate more value for the liquidity provider and incentivize holding the INDY token.

Proposed changes

Send half of the unclaimed INDY rewards to the Sundae V3 ADA/INDY pool with ID 2d07be758f0803996e716ecf2fc96fa67ec43b825737f9cd4f5a15ce. This new pool has a fee manager set by the Indigo PWG and thus the Indigo DAO has a say in how fees are set for this pool on Sundae V3.

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Oh yes that’s a great idea and will help for sure people migrate to the new pool, ty

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Good idea, allowing the dao have a bigger role in dex management is probably a solid move. Especially during this growth phase

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Great idea ! Do we have any idea on how much INDY are currently unclaimed ?

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I was going to add some averages in the proposal but it’s difficult considering it varies drastically and I dont want people to be misled or have unrealistic expectations. It mostly depends on whales that fail to claim rewards before they expire. Sometimes the unclaimed rewards stack up huge and other times theres not much that goes unclaimed. I dont have the exact numbers but that last bit of unclaimed accumulated for about 6 months and 18k Indy went to both dexs. But I believe that amount was about 3x what normally goes unclaimed so we shouldn’t expect that to be the norm.

This is also why the HRA’s for those Indy farms can vary over time. It really depends on how much unclaimed Indy there is each epoch.

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