It’s been just under 7 days since Epoch 2 launched on Arbitrum One. Those campaigns will run until 15:00 UTC on October 14th, 2021. The SWPR signal proposal laid out a plan for a multi-month liquidity mining campaign, where SWPR awards are readjusted every two-week period (Epoch!). According to that emission schedule, there is 784,000 SWPR to be distributed on Arbitrum One for the third epoch.
This thread has been created to serve as concentrated discussion surrounding potential future changes to the SWPR emissions.
Epoch 2 introduced additional community pairs and adjusted the initial distribution ratio. Initial plans from the Swapr squad make slight adjustments to this. Major proposed changes include:
ETH / WBTC from 10% to 12.5% - This is a strong pair with generally great volume. It makes sense to continue prioritizing here.
DAI / ETH from 10% to 9% - Dai has been outperformed in both relative TVL and volume quite significantly since its inclusion. The end goal is still to reach parity between the DAI and USDC pairs, but for the short term as more DAI enters the Arbitrum ecosystem, a slight reduction may make sense.
USDC / USDT from 4% to 2.5% - Discussion here is welcomed. Currently this pool accounts for a large majority of Swapr Arbitrum TVL, despite getting little to no volume. This reduction follows the plan as set forth from Epoch 1, but there may be something to discuss surrounding the community’s perceived value of TVL.
ARBY / MIM from 1% to 0.5% - The Adamant folk have been more than friendly, but this pool hasn’t quite had the anticipated splash. Proposing a slight reduction to allow the community to catch up to the relative allocation percentage.
GNO / ETH from 2% to 1.5% - Similarly to the above, GNO pools haven’t had the anticipated movement. Proposing a slight reduction to allow the community to catch up to the relative allocation percentage.
It’s also worth noting, the previously discussed ibBTC and BADGER pools from Epoch 2 are yet to be deployed. These will instead be deployed alongside Epoch 3 WITH the rewards noted in Epoch 2. Epoch 3 rewards will be distributed the following Epoch, etc. Here’s some context from last post:
The big addition to Epoch 2 is 8% of SWPR rewards to the ibBTC/ETH pair and 4% to Badger/ETH pair. [Badger](https://badger.com/) has a long history with DXdao. It is a bitcoin-focused DeFi product with almost $600m in TVL across chains and an engaged and passionate community. They joined the Biz Dev call last fall and some former DXdao contributors have also done work for Badger. Bizdev has been chatting with them as they look to make a big push on Arbitrum. Badger is the project’s native token; ibBTC is an interest-bearing Bitcoin synthetic. Badger plans to build a vault that integrates Swapr farming as well, so hopefully this turns into a longer-term productive partnership.
One final change up to discussion is the extension of campaigns. The community has expressed concern over the manual stake and unstake process bi-weekly. This change would combine the token values at the above percentages from Epochs 3 and 4 to be distributed over a 4 week period. Nothing would change about the release, the only difference would be that active adjustments cannot be made over the period. Of course, additional campaigns can be created using the previous reserve SWPR allocations if needed.
Is the community prepared for this? Predominant discussion in social channels support the movement of slowly combining Epoch distributions on gas intensive chains, so if no negative feedback is received Epochs 3 and 4 will be combined using whichever the final allocations might be for Epoch 3.
Mainnet will actually commence with Epochs 1-4 combined, while xDai will start one epoch at a time. As previously mentioned, these farms are currently expected to launch alongside Epoch 3.
Thoughts? Changes or additions? More info in the public tokenomics working sheet. Epoch 3 is set to launch on October 14th at 1500 UTC.
Note: There are still three pairs from the first epoch whose campaigns have not launched because the tokens are not yet bridged to Arbitrum. There is community interest in including these pairs once they are available to do so.