[PIP-17] Re-allocate PICKLE rewards

VOTE HERE: https://snapshot.page/#/pickle/proposal/QmUkCadtMgkpvxX3yUc2PXJU63zxww1Q7ysTpJ7AGiSKty

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:

  1. Decreasing the proportion of PICKLE/ETH LP rewards by 5% (from 70% -> 65%)
  2. Increasing the proportion of prenBTCCRV rewards by 3% (from 5% -> 8%)
  3. 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.

If protocol profits increase, staking rewards would increase, which would make staking even more attractive.

I do see merits to both sides of the argument but would want folks to be cognisant of the fact PICKLE would no longer have a pool in the three digit APYs. That mental barrier is an unfortunate but important one. Are we making the bet that most of the PICKLE/ETH liquidity providers are here for the community rather than the APY? (that they would shift their LP’d PICKLE to staking rather than selling it)

I am pasting a post I wrote in Discord onto the forums for people who use either/or.
Due to the interest of time-sensitivity of this please read ASAP re: PIP-17

Hey guys I was messaged by a few people to hop in and say something. I’m seeing the outcome of this vote and I really think its in the best interest of Pickle to vote YES on this proposal. This would be a HUGE value driver for us and attracting Bitcoin TVL is imo the way to go. I believe the PICKLE POOL rewards will eventually have to be touched at some point, and by allocating a small amount of these rewards to things that will have huge impact on the project (other farms) you are acting successfully in the long term interest of the project.

Voting YES on PIP-17 will not only increase the TVL as I said but also increase Pickle Price as the perception of the project improves.

I highly implore you to vote YES on this, and if you have already voted NO, I ask you to change your vote if possible.

I do not believe jealously guarding pickle pool rewards is a successful approach and is a short-term solution to a long term problem.

Please give this a serious consideration as the vote is VERY close currently. I genuinely believe this will be successful for EVERYONE, no matter what farm you are in, if you’re a staker, in the pickle pool, holding PICKLES, or even another project.

Vote YES on PIP-17.