Recently we noticed some changes in iAsset minted supplies and Liquidity Pools. The PWG closely follows the movement of the market and would like to propose rewards changes:
Rebalance SP rewards to reflect the current minted supplies and maintain iUSD as the main iAsset
Rebalance LP rewards to distribute based on TVL
Add incentives for iUSD/USDC stable pool
Include WingRiders in rewards with some limitations related to missing iUSD/iAsset LPs
Add incentives for iSOL/iUSD liquidity pool based on iAssets TVL between DEXs
I understand the reasons but don’t like reduce INDY rewards especially to iSUD pools. Fees already very low for liquidity providers there so if rewards are reduced people will remove and slippage trades will be higher
We are changing the incentives looking for protocol growth and sustainability. We won’t be choosing DEXs, everything will be distributed based on TVL (which means sundae will have the same APR as Minswap). We decided to include WR since they have the biggest ADA/iUSD LP now, but with limited rewards since they don’t have iAsset/iUSD pools yet.
We have plenty of liquidity for iAssets while iUSD SP is at low levels and that must be addressed properly. We won’t be removing incentives for LPs, however the liquidity growth should be in balance with SP health.
Do we? I can’t even put in a buy for 5-20k without getting hit with 2-3% slippage on ibtc and iusd. I’d argue it’s a mistake to shift incentives from lps to sps (especially in the case of iusd), when sp rewards are already significantly higher and available without the risks inherent to lps.
This is undoubtedly a step in the right direction. Incentivizing stable swaps is long overdue and the benefit they have for iAsset peg stability is worth it. The PWG plans to propose rewards adjustments more often as markets are evolving more rapidly. Lets keep the conversation going fam.
