Market conditions have shifted since the previous reward update, with notable changes in iAsset market caps and SP dominance. In response to these adjustments, the upcoming update will recalibrate rewards as follows: iETH SP rewards will be maintained, while iBTC SP rewards will be significantly increased. Additionally, iUSD rewards will experience a small boost, reflecting the latest market dynamics.
Now that we have a stablecoin with enough liquidity we can also include a stable pool for iUSD/USDM.
Before 2.1 we had fixed interests, now some interests are higher. That’s why the SP is receiveing more rewards in some cases. But iETH is almost the same bc the supply is lower. iUSD SP increased bc of the 30% interests.
It’s better to maintain the protocol updated with the current supplies and the current interests from iAssets. Today iETH is receiving more rewards than it should based on the current reduced minted supply when you look at SP rewards + LP rewards for example.
iBTC supply dominance between iAssets increased drastically since the last proposal as well.
We can take other approchs, for example decreasing the SP reward dominance from 50% to 45% from the calculations to not affect the LPs so much.
However, we should also consider that higher incentives for SPs helps the peg giving the current market conditions. If we decrease the SP rewards for the main iAsset (iUSD) it can increase the depeg.
I would use emissions which are currently for Indy stakers. Why?
LP and SP provide a service for the protocol to strengthen the use-cases. Indy stakers are seen as stakeholders and earning a fair share on the fees by ADA rewards. With v2.1 it’s very likely that these rewards are not gonna fall below 10% and with the buybacks it’s also likely that Indy is not going to fall in price against ADA.
If we want to strengthen the protocol and help reducing the discount. We should incentives to buy iAssets of the market by increasing the services (LP/SP) which strengthen the protocol use-cases.
I would recommend to remove the Indy emission for stakers. Use these available emission for LP, SP in a reasonable manner and if it’s too much send leftovers to the treasury.
If we have a common ground that we should use emission which are currently for stakers I’m interest in helping forming the proposal, but we need a common ground
Fair enough, @Nyorok if you want to consider reallocating some of those that was previously sent to indy stakers, I think it was something like 3k extra INDY.
Alternatively since this temp check has been on for quite awhile now,
The proposal to reconsider the allocations from stakers can also be done in a separate proposal imo so that this can move to poll instead.
The main driver is the release of WingRiders V2, which introduced a suite of innovative features designed to enhance user experience, strengthen security, and ensure sustainability. WingRiders DEX supported the Indigo protocol from its start, proving its dedication to the Cardano ecosystem.
We also have discussions with some of the major liquidity providers who hold iAssets and plan to move liquidity to our DEX.
Please consider this and provide a calculation including our pools as well - Let us know in case you need some details.
In a cooperation with Liquidity provider and major iAsset holder, transfer of iAssets to Wingriders has been completed. Here’s our proposal for new distribution of INDY rewards to DEXes based on iAssets TVL.
Note that per our review, your current model did not consider if there is any liquidity in pools and you still distribute rewards. For example there is 0 TVL in iUSD/USDM pool on Minswap and you propose 304.36 INDY rewards for that pool.
Hi @R4imon we have plans to change how LP rewards are distributed so we can support other DEXs. This proposal is only related to rebalance the current rewards after the minted iAssets changes in supply. We will let you know as soon as we have this new proposal related to LP distributions.
