SWPR Emissions November 11th Discussion

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!).

This thread has been created (and will continue to be created bi-weekly) to serve as concentrated discussion surrounding potential changes to the SWPR emissions on Arbitrum, xDai and Mainnet. If you are curious as to the methodology of these changes, on-chain data has been utilized in various areas such as this community example. Lets start with the larger proposed fundamental changes:

Fundamental changes

There are a few larger changes being proposed:

  • Arbitrum Allocation from 80% to 70% - With the recent launch of farms on xDai, it has become apparent that there is a serious demand outside of Arbitrum. As things continue to regulate and normalize this allocation could even continue to flow to the most prominent chain.

  • xDai Allocation from 10% to 20% - Speaking of most prominent chain, xDai has exploded relative to its own eco-system and percentage allocation of SWPR emissions. This change should be seen as the start of consistent cross chain changes in allocation.

  • Singlesided staking introduced - This may not be prepared for the immediately upcoming period, but is deeply on the mind of the community at the moment. Tentatively this would be SWPR staking utilizing unallocated emissions from the first few Epochs. Expect a dedicated forum post early next week to further the discussion.

Arbitrum Epoch 5

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Epoch 4 was very light on its changes as a precursor to some larger discussions for the following Epochs. Now that we are on Epoch 5, the community has discussed some larger changes. Relative proposed changes include:

  • USDC / WETH from 20% to 21.5% - Not much to say here, USDC/WETH continues to be one of the strongest pairs in both TVL and volume.

  • ETH / WBTC from 12.5% to 14% - This is a strong pair with generally great volume. It makes sense to continue prioritizing here.

  • DAI / ETH from 9% to 5% - Dai continues to be outperformed in both relative TVL and volume quite significantly against USDC since its inclusion. The end goal was to reach parity between the DAI and USDC pairs, but for the short term continuing to prioritize competitive pairs will be a better use of allocated SWPR.

  • USDC / USDT from 2.5% to 2% - Although this pair has seen more volume than ever before, it still pales in comparison to its allocation. This reduction follows the plan set forth by the community in the previous epochs, slowly phasing the stable pool out.

  • CRV / WETH from 3% to 5% - The CRV pool has been significantly out performing its peers, making it a consistent contender in both volume and TVL. This change aims to further align and engage the CRV community on Arbitrum.

  • GRT / WETH from 1.5% to 1% - Adverse to the above, GRT has been flying under the radar. This slight reduction should give time for the community to catch up to the allocation.

  • ARBY / MIM from 0.5% to 0% - There have been some serious challenges with this pool in both volume and TVL. This is likely the result of many factors, including lack of data in the subgraph (no stable pair against ARBY or MIM), and/or the locked ARBY liquidity in Sushiswap. Although this proposal aims to remove this allocation, there is no ill-will towards our Adamant friends. We knew there would be some challenges here, and would love to explore any additional areas of collaboration in the future.

  • GNO / ETH from 1.5% to 1% - GNO pools continue to lack the anticipated movement. This proposed reduction will continue to give leeway for the community to catch up in both TVL and volume.

  • IMX / ETH from 1% to 1.5% - IMX has been improving significantly in volume and TVL. This slight boost should help push the community further on Swapr.

xDai Epoch 3

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xDai will be seeing relatively smaller changes (if not accounting for the massive shift from 10% to 20% of emissions):

  • WETH / WBTC from 15% to 12.5% - This pool has struggled with TVL and suffered in volume. This is a very important and relevant pair, and as such proposing a small shift down to hopefully allow the community to catch up.

  • STAKE / XDAI from 9% to 11.5% - Although struggling to attract TVL, this pool has considerable relative volume. On top of this, DXdao is exploring a potential alignment of interests with the xDai community.

Mainnet Epoch 3

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Mainnet continues to flow through its first 4 Epochs, no changes can be made until the following period. It would be great if the community were to discuss any potential changes or additional well ahead of time, as these proposals will need to be queued for longer.

Conclusion

Thoughts? Changes or additions? More info in the public tokenomics working sheet. Epoch 5 Arbitrum and Epoch 3 xDai/Mainnet are set to launch on November 11th at 1500 UTC.

3 Likes

Thanks for putting this together.

I think the extra allocation to xDai is a great idea. Swapr (and DXdao) are well positioned there and I think activity there may increase.

Looking forward to single-sided staking! That will be a great prelude to Swapr guilds.

3 Likes

There were some comments from the community in Discord about merging the epochs for certain pairs. We see that some of the pairs in Arbitrum will remain a constant and merging 2 epochs might help in getting sticky liquidity. This also helps farmers save gas costs on migrating from one epoch to another.

The below pairs have been pretty consistent and we will probably have very similar issuance for the next 2 epochs. We might want to go ahead and create one reward campaign for epochs 5 and 6 together for the following pairs

  • SWPR ETH
  • USDC ETH (Best pair yet for now in terms of TVL and volume and been doing consistently)
  • WBTC ETH (Got a boost this epoch and is something that is providing constant volume)
  • DXD ETH
  • CRV ETH (Has been doing tremendous with volume > TVL and would be good to continue to to incentivise and attract liquidity)
4 Likes