There has been a lot of good discussion on the topic of re-allocating PICKLE rewards in this previous forum thread: [RFC] Re-allocation of PICKLE Rewards.
Other discussions informing this PIP include:
This proposal seeks to re-allocate PICKLE rewards by:
- Decreasing the proportion of PICKLE/ETH LP rewards by 5% (from 70% -> 65%)
- Increasing the proportion of prenBTCCRV rewards by 3% (from 5% -> 8%)
- Increasing the proportion of pDAI rewards by 2% (from 4% -> 6%)
This proposal aims to address the following concerns:
- we may be over-emphasizing the need for deep liquidity at the expense of potential profit generation;
- we have an opportunity to significantly increase TVL by attracting latent BTC capital; and
- we have an opportunity to increase protocol profits by attracting deposits to a high-earning PickleJar.
On the other hand, certain concerns have been raised against the proposed approach:
- some PICKLE/ETH LPs may not want to give up 5% more of emissions; and
- we are paying for BTC TVL using PICKLE emissions. BTC Jars are less effective for profit generation while the benefits of pure TVL are more intangible.