Proposal: FARM LM Time Extension

DAO Archive (SUBMITTED)
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This proposal is expected to appear on Snapshot for voting on 2021-09-05T12:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TL;DR

  • This Proposal seeks to extend the LM Rewards on FARM to 100 days.
  • This should help Bancor target the 52 Million USD of single sided FARM liquidity currently deposited in Harvest’s profit sharing pool.
  • The FARM Community wants to further add to the pool but the time limit on the Rewards is making it difficult to coerce some into jumping in feet first with a 100 day commitment.
  • The FARM Team has already shown a great deal of commitment by putting up part of their treasury and also pointing the buyback mechanism towards Bancor.
  • The FARM Pair already sees very high native APYs from the raw amount of trading volume the pair generates, so much so that the BNT Rewards are less than the revenue it generates.

Motivations

The FARM Community is ecstatic about Bancor and that is clearly shown by the huge amount of support and revenue they’ve brought onto the platform. As mentioned above the FARM community wants greatly to stake their tokens with us but are taken aback by the 16 day timer (as of the time of writing this) on what is a 100 day commitment. Bancor can stand to gain magnitudes in terms of liquidity and volume from this while fortifying our relationship with one of the top farming protocols in the space. Another point worth noting here is that looking at the fees already gathered on the FARM Pair the LM has already paid for itself and then some.

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We know that single sided staking is a big hit for the FARM pair and at this point Bancor is already generating way more returns for FARM depositors. The problem lies in that past apys do not guarantee future ones and this acts as a deterrent for single sided deposit given the Harvest’s own profit sharing pool gives a comparable but more stable apy. By giving FARM LPs that have now seen the effectiveness of the pool a chance to jump in, Bancor is essentially targeting about 52 Million dollars worth of liquidity in the Harvest pool. Those 52 Million could theoretically translate to huge amounts of volume to Bancor.

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FARM has Generated the second biggest amount of revenue for the protocol since the pools launch.

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Thanks to @glenn for help with data queries.

FOR - Increase FARM LM Duration to 100 Days.

AGAINST - Do Nothing.

1 Like
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Hell yeah - gotta reward our best partners here.

1 Like
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What was the original timeframe for the initial rewards? Say it was 45 days, this proposal is to add another 55 days?

I wouldn’t be adverse to from day X making this 100 days in total, going out to farm holders and advising that by moving on said day, they are guaranteed rewards for the full time there is the possibility of IL.

2 Likes
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yes that is the intention, rather than waiting for this campaign to run out and relaunch it’d be more useful and cost efficient to extend it to 100 days from here.

1 Like
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Proposal looks good to me. Note that the fee data was from the week of 7/12 which is right around the time when LM rewards went online for this pool. Extending the rewards so that the campaign last 100 days should let those LPs accrue 100% IL as well.

1 Like
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@tenzent, Do you think we should whitelist iFARM as well? There isn’t much liquidity for this token on ETH mainnet and most of it appears to be on Matic. Might not be a bad idea to have a small pool to see if that brings in some good trade volume?

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For Ifarm, I had put this in the community chat room a while back

There is a lending option in rari with no APY at present and as Glen says a pool on quickswap. On the new polygon page on harvest.finance you can farm that pool at a small APY return.

I can’t see why we wouldn’t whitelist Ifarm with a small co investment and see if there is any demand.