SIP 2: Change Rewards Ratio

Simple Summary

This SIP proposes to change the current rewards ratio of 80% Swap Pool/20% Seed Pool to 90% Swap Pool/10% Seed Pool.

Abstract

The current rewards ratio is 80% Swap Pool/20% Seed Pool. Because of the limited amount of SYX at launch, the Seed Pool was created to give users an incentive to participate on the platform and earn rewards. Now that there are atleast 175,000 SYX in circulation, users can use the AMM (Swap Pool) to get SYX directly. Therefore, the need to give rewards to the Seed Pool can be reduced from 20% to 10%.

Motivation

This will incentives more users to participate into the liquidity pool (Swap Pool) by giving them an extra 10%. Currently, the liquidity in the Seed Pool is not utilized to create yield. By reducing the Seed Pool rewards, users might take a leap of faith and join the Swap Pool and earn higher APR’s.

Specification

Current SYX rewards allocation ratio is defined by the allocPoint of PoolInfo in RewardManager.sol. It can be updated by calling the RewardManager.set(poolId, allocPoint, updateNow).

The current allocPoint for Seed Pool is set to “1” and Swap Pool is “4”, which effectively gives a 20:80 ratio. We propose to change Swap Pool’s allocPoint to “9”, which will result in a new ratio of 10:90.

Rationale

Test Cases

Implementation

We will create a new on-chain proposal by calling the Governor contract Governor.propose(), and pass in a solidity transaction that updates the weight of SYX/VLX Swap Pool from 4 to 9, which effectively sets the reward ratios between Swap Pool and Seed Pool from the current 80%:20% to 90%:10%. The transaction that is passed to the Governor is to invoke RewardManager.set(poolId, weight, updateNow) function, and set poolId = 1, weight = 9, updateNow = true, to change the Swap Pool.

Solidity

governor.propose(
    ["0x8b2B0CE402b33b5A2744371311E3053EAB2E2f3d"],
    ["0"],
    ["set(uint256,uint256,bool)"],
    abi.encode(
            "set(uint256,uint256,bool)",
            1,
            '9000000000000000000',
            true,
        )
);

Copyright

Copyright and related rights waived via CC0.