PatchoEscobar

  • Jun 28, 2022
  • Joined Aug 12, 2021
  • In OIP-18: Reward rate framework and reduction

    PatchoEscobar
    As one more high level request, as mentioned in the policy channel, I think it could be worth putting a banner on the site indicating that this change might be coming to minimize anyone feeling blindsided. Noting that this could come with some FUD but a lot of the OGs and smart folks seem to think this change is a good idea (myself included, if it's moved further out timewise), and I think that it is repairable FUD if any. Just encourages community transparency.

    • In OIP-18: Reward rate framework and reduction

      I think that the idea itself has merit over time in the interest of creating a sustainable protocol over time.

      My concern here would be for the people who joined Ohm within the last couple of months - a number of folks joined at 600/700, or even 450 as shortly as 2 days ago, and having seen the biggest liquidation in the protocol's history to date which took the price all the way down to $300, I believe that there are a number of recent additions to the community (including myself, being cognizant of my bias), who are relying on the high APY / >10K% staking rate to allow us to recover over time. If this change was to be implemented with 3+ months of notice, I would be significantly more comfortable with it. When looking to build faith in a community / protocol that can already seem a little bit "too good to be true", this sort of a reduction would definitely not look good to recent additions to the community in my opinion.

      At a high level, I think that this is a completely reasonable change to implement, but not right away; there's still a lot of folks joining Ohm and capital flowing in, and it seems sustainable. I would also worry that in the case of a price spike from supply reduction, which is certainly possible, we could see a number of "whales" immediately liquidate given the rapid increase in their shares' value. We saw what impact a single $1.5M liquidation had on the share price - imagine 10 of those.

      Thanks so much for the thoughtful proposal folks. I would propose a 4th or 5th option which is (1) or (2) but implemented in a couple of months.