Proposal #94
Passed on 14 Dec 2021 with 95.7% of the votes for yes.
Yes
95.7%
99.8% without abstain
Veto
0.0%
of votes cast
Ended
14 Dec 2021
95.65%
of votes cast
4.16%
of votes cast
0.19%
of votes cast
0.00%
of votes cast
Problem Statement
The Adjust Scale parameter of used to dampen volatility in the weekly incentives adjustments algorithm is too low. Pools are hitting this cap and either not having incentives drained or added quickly enough to reward the liquidity the market is valuing the most.
This could be detrimental to TVL growth as existing liquidity can become over incentivized while newer liquidity, more valued by the market, struggles to attain justified reward allocations.
Experimental Problem Solution
Incrementally increase the Adjust Scale parameter then monitor how frequently pools continue hitting the cap and assess if further increase proposals are warranted. The hypothesis is that this variable should be turned up to probably 25% but in multiple phases to allow for observation of the impacts.
Proposal
By voting YES on this proposal you signal approval to increase the Adjust Scale variable +5% (15% to 20%)
By voting NO on this proposal you signal dissent and want the Adjust Scale variable to remain at 15%
Commonwealth Discussion [Hidden link]
Adjust Scaling CAP Model [Hidden link]
Showing pools that have too high incentives that are reducing too slowly (Blue), too low incentives that are increasing too slowly (Green) and that the scaling does not apply to due to low maturity (Grey)