[PIP 35] Reallocation of PICKLE rewards

Vote: Snapshot


Background

Since the last rewards allocation exercise, 6 jars have launched while 3 others are on the way. These jars are the result of important collaborations between Pickle and other protocol developers and we shall announce additional rewards and incentives as they are finalized.

The launched strategies are:

  1. pUNITSLA (mTSLA-UST LP)
  2. pUNIAAPL (mAAPL-UST LP)
  3. pUNIQQQ (mQQQ-UST LP)
  4. pUNISLV (mSLV-UST LP)
  5. pUNIBABA (mBABA-UST LP)
  6. pSUSHI (SUSHI-ETH SLP)

and the upcoming strategies are:

  1. alUSD3CRV
  2. pSUSHIALCX (ALCX-ETH SLP)
  3. pUNITRIBE (FEI-TRIBE LP)

In order to give these jars the best push to bring in new users to Pickle, we want to reallocate emissions to the jars.

Currently, this is the allocation of $PICKLE rewards (rounded).

PICKLE/ETH: 62.5%
p3CRV: 2.083%
pSUSHIDAI (ETH/DAI SLP): 3.125%
pSUSHIUSDC (ETH/USDC SLP): 2.083%
pSUSHIUSDT (ETH/USDT SLP): 2.083%
pSUSHIWBTC (ETH/WBTC SLP): 2.083%
pSUSHIYFI (ETH/YFI SLP): 3.125%
pUNIBAC (BAC/DAI LP): 4.167%
pstETHcrv: 4.167%
pSUSHIyveCRV (ETH/yveCRV SLP): 6.25%
pUNIBASv2 (BAS/DAI LP): 4.167%
pUNIMIR (MIR/UST LP): 4.167%

Proposal

The Pickle core team requests the approval of the following allocation of $PICKLE rewards:

PICKLE/ETH: 50%
p3CRV: 3%
pSUSHIDAI (ETH/DAI SLP): 1%
pSUSHIUSDC (ETH/USDC SLP): 1%
pSUSHIUSDT (ETH/USDT SLP): 1%
pSUSHIWBTC (ETH/WBTC SLP): 1%
pSUSHIYFI (ETH/YFI SLP): 1%
pUNIBAC (BAC/DAI LP): 6%
pstETHcrv: 1%
pSUSHIyveCRV (ETH/yveCRV SLP): 6%
pUNIBASv2 (BAS/DAI LP): 3%
pUNIMIR (MIR/UST LP): 5%
pUNITSLA (mTSLA-UST LP): 1%
pUNIAAPL (mAAPL-UST LP): 1%
pUNIQQQ (mQQQ-UST LP): 1%
pUNISLV (mSLV-UST LP): 1%
pUNIBABA (mBABA-UST LP): 1%
pSUSHI (SUSHI-ETH SLP): 1%
palUSD3CRV: 5%
pSUSHIALCX (ALCX-ETH LP): 5%
pUNITRIBE (FEI-TRIBE LP): 5%

Rationale

At present, a number of pools with very high liquidity and rewards are sustaining themselves whereas more established pools have de-risked considerably with the influx of more conservative capital to DeFi.

We feel that Pickle Finance’s future success rests in its ability to form a community that prides itself in developing close partnerships with strong teams and protocols that are pushing the boundaries of DeFi. We have identified and worked closely with 3 such protocols in Q1-2021:

  • Basis, the first protocol to implement the seignorage share model for next-gen stablecoins. Pickle is a strategic partner to the peg-stabilization mechanism in BasisCash v2.
  • Terra, a cross-chain pioneer and the team behind Mirror, a strong challenger to Synthetix, and the newer Anchor protocol for fixed stablecoin yield. Terra and Pickle are currently working on a co-promotion and will be hashing more strategies together in the near future.
  • Alchemix, the self-paying loan protocol, whose co-founder was once a Pickle mod and for whom we have developed a unique symbiotic strategy in order to cement the partnership. As a consumer of yield farming services, Alchemix is a great match for Pickle’s value proposition.

In the first quarter of 2021, Pickle served the strong appetite for well-executed “degen” jars in new protocols like Basis, a strategy that gave a much-needed boost to our coffers. With the upcoming launch of DILL, we want to continue the focus on the bottom-line and instil that ethos in the first batch of DILL holders. Note that the above protocols hold $1B in available liquidity that is serviceable with our current and soon-to-launch jars. A successful launch of these jars should lead to a manifold increase in our protocol revenues (i.e. more buybacks, more revenue-sharing, more resources for growth). If we add FEI-TRIBE into the mix (a momentum play), that number grows to $1.5B.

In order to do this, and do it in a timely manner, we kindly ask the current Pickle voters, the PICKLE-ETH LPs, to wholeheartedly support this proposal. In order to complete the Pickle version of the cryptoeconomic circle, we need to make some tough choices like slashing jars that have lost momentum to launch new ones as well as decreasing incentives to LPs in order to free them to increase meaningful usage of the protocol (i.e. bringing in new revenues). Naturally, this involves compromises between the short-term interests of individual governance voters (currently, the LPs) and the long-term interests of the protocol and all PICKLE holders.

As usual with these proposals, a lively discussion is encouraged. We shall be voting in the following 24 hours but feel free here to suggest changes to the proposal, with arguments, or to signal your vote for or against with the proposal as-is.

  • Proceed to Snapshot
  • Do nothing

0 voters

3 Likes

Makes sense to me. I definitely would have liked to see the information garnered from the North Star Calculations as well when evaluating these changes.

4 Likes

This is a great solution that will attract meaningful TVL, which I think we all agree is the goal and what drives Pickle’s success/growth.

4 Likes

big support, maybe one day we can streamline jars/farms to have really high attractive apy on a few farms rather than so many

3 Likes

Let’s do it. We have grown from farming around UNI and SUSHI and I believe we can attract different TVLs from different places.

3 Likes

In support. All the newly added farms will bring value to the platform and attract sizable TVL.
Also dropping the 3CRV farm rewards in favor of an alUSD3CRV farm with increased allocation is a good move. Pickle needs to have at least one choice of stablecoins farm with good APY for its users.

3 Likes

Thanks for the inputs - if all is in favor of this, we will push this for a snapshot vote soon.

2 Likes

Update alert

After a rethink, we want to give an opportunity for the pure 3CRV people to stay within Pickle. Hopefully, with a little more emissions and with DILL upcoming, this Farm will boost.

2 Likes

I think it would be better if pUNIBASv2 pickle rewards stay constant at 4.167%, doesn’t make sense for pUNIBAC allocations to increase and pUNIBASv2 to decrease.

Hope you guys are right because for me I’d close the stock Jars as they’ve brought in almost 0 value. The MTSLA-UST has literally 0.
Fingers crossed boyz

1 Like

Yeah, it pains us to see this as well. We are thinking they are still good opportunities and just need a little bit more promotion. We are working with Terra on that will have an announcement soon.

2 Likes