[PIP-12] New Farms + Reward Redistribution

VOTE HERE: https://signal.pickle.finance/#/pickle/proposal/QmX2fTDbXXCANTabcz9sS7dUk9HdtxhJ2rqBLuWqw8q51n

After a long discussion, the core team has decided to propose adding three new farms for the recently launched pools (UNI WBTC/ETH, renBTCCRV, and 3PoolCRV) in order to drive TVL.

As such, the re-distribution will be as follows:

PICKLE/ETH: 70%
--- old stablecoin farms ---
USDT/ETH: 4%
USDC/ETH: 4%
DAI/ETH: 4%
sCRV: 4%
--- new farms ---
3poolCRV: 4%
WBTC/ETH: 5%
renBTCCRV: 5%

This was a very difficult balance to strike, and is no doubt still very imperfect. I sincerely apologize to anyone who feels slighted by this but we are trying to balance many different competing interests while trying to push the protocol forward.

It is very possible that we get things wrong, and if this is the case, we pledge to correct these imbalances in the next week when we re-assess the distribution.

That being said, there are a few things to address here:

  1. We are taking 5% from the ETH/PICKLE pool to distribute to the rest of these new pools. We know this is not good news to all those who are voting because this directly affects you negatively, but do note that this is not intended to be a trend. We still want to give the lion’s share of rewards to the ETH/PICKLE pool and I do not see this number going down further any time soon. There’s also the possibility that this number can go up again in the future if conditions change. Thank you for bearing with us.

  2. We are paying a “premium” to attract people into the new BTC-based jars because we regard these LPs to be a very different crowd than the existing stablecoin pools. These reward percentages will likely change in the future, but for the mean time we want to “shock the system” to encourage TVL to rush in to these pools.

  3. Existing farms are losing quite a few % points to their rewards. And we acknowledge that there’s a real concern that people might want to leave the USDC / USDT pools (they are the largest pools we have). However, please do consider the fact that these farms still reap free PICKLE rewards, and if there is a lot of feedback from the community that these numbers need to go back up, we the core team will be listening attentively and we can adjust accordingly.

That’s about it for now, and this is honestly one of the more difficult PIPs I have had to write due to all the variables involved. It’s inevitable that some people will be unhappy with this proposal, but I trust that we as a community can move forward and adjust once we re-visit this again next week.

Thank you all for your time.

Discussion Context:

6 Likes

Having trouble connecting to https://signal.pickle.finance so the vote is not up yet :frowning:

1 Like

Same, I thought it was me. But snapshot seems to not be working atm.

If those jars are supporting pickle staking rewards, then I’m happy to vote for it.

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Is there any estimates as to how much this could increase TVL? Or how much in fees could potentially be generated? For instance based on other protocols is it safe to assume this change could result in at least a $x million TVL increase with $x fees extrapolated from that?

Some of those jar have really low TVL, this might be a good motivator for peeps to try them out. Estimating by how much they will grow is near to impossible, but more TVL generally means more fees.

I don’t think it’s impossible. For instance, if we look at another protocol that has something similar and they have 10 million TVL then we kind of have a ball park idea of what to expect. I don’t know where to look though. But we can narrow the estimated initial TVL down to a range vs thinking TVL will be $1 billion or $1 for these new farms.