Summary: We should decrease LP staking rewards now that the protocol owns the vast majority of the pool.

Background: LP staking was introduced at launch to help bootstrap liquidity before liquidity bonds were introduced. The protocol (between the treasury and what is being farmed on Onsen) now owns >83% of the pool. LP staking has gone from 80% of the liquidity to 16% today. However, we are still paying the same rewards as when we started.

Abstract: This proposal seeks to lower the LP staking rewards through a phased approach. Rewards would be lowered from 90 OHM per day down to 45 OHM per day. This would occur through 3 adjustments, each occurring 4 days apart.

Schedule:
Day 0: Proposal passes
Day 1: Rewards from 90 -> 80
Day 5: Rewards from 80 -> 65
Day 9: Rewards from 65 -> 45

Motivation: To utilize our funds efficiently, and to minimize the impact of a transition to lower rewards.

For: Lower rewards, use this schedule
For: Lower rewards, use a different schedule
Against: Do not lower rewards

Discussion and polling will occur here, and we will hold a 2-day snapshot vote for this proposal starting Thursday 4/29. The first adjustment would happen at soonest on Monday.

Preliminary Polling

Do the Ohm rewards currently available for LP Staking go to what the protocol stakes at all?

Or is it only for individuals who stake LP?

  • Zeus replied to this.

    Iceman it only goes to individuals who stake LP

      @Zeus yes the protocol owns 80+% of the liquidity but the order book is t exactly very deep yet, could the schedule be even more drawn out than this? Say we do it over a month?

      i am for reducing the rewards, however i believe it is too soon and too drastic, having it done over a period of 5 day intervals would encourage last minute buyers or incentives other Ohmies to stick to SLP bonds and not just the BonDai's
      Schedule the following:
      Day 0: Proposal passes
      Day 1: Rewards from 90 -> 80
      Day 5: Rewards from 80 -> 70
      Day 9: Rewards from 70 -> 60
      Day 14: Rewards from 60 -> 45

      just squeeze one extra layer

      3 months later
      kschan changed the title to OIP-5: Lowering LP Rewards .
      kschan locked the discussion .
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