[RFC] Pause Penalizing Pickle/ETH Providers

A few weeks ago, after the DILLDAO voted to migrate its incentivised PICKLE/ETH LP from Uniswap to Sushiswap, the Pickle community was urged to click the migrate button and move their funds across. Many loyal Pickle LPs did so without hesitation but have watched the LP APY dwindle and dwindle whilst those who did not migrate whether by apathy or deliberate action have enjoyed far higher returns in the gauge incentivised Uni pool. The UI has been removed so most Pickle LPs have not been able to move their funds back (though vfat and etherscan would still probably allow the determined back in).

Some may say that it’s their choice to stay in, however many are sitting on sizeable IL losses from entering the pool and supporting PICKLE from the beginning, losses that would become a lot less impermanent if exited now.

I propose the community look at redressing this situation and at the very least increase the APY commensurate with the risk the PICKLE/ETH LP’s are taking.


Should the Core team prioritise a permanent solution so DILL holders can vote on PICKLE-ETH SLP allocation?
  • Proceed to Proposal
  • Do Nothing

0 voters

13 Likes

Thank you ser. I do feel a bit cheated for doing what I was supposed to do. I was also left with the impression before I migrated that things would autocompound.

7 Likes

Makes sense. We allocated a proportion of emissions proportionate to the Uni LP at the time, but it’s worth reviewing both in light of where that gauge is and also LP fees that are received, as I know Uni often has higher volumes than Sushi.

4 Likes

Even if I l not invested in this pool since Dilldao was launched I agree with you @Clintos, fidelity needs to be rewarded, I would support a vote in this aspect to « compensate » picklers with more incentive :fist:t2:

3 Likes

The main problem I see there is that the Pickle protocol has told everyone to migrate but it rewards highly those who did not migrate.

Those who knew that the Pickle UNI rewards will not be phased off, stayed in the UNI pool and keep their votes to give Pickle UNI 6% of emissions. The interface does not allow to join that pool anymore.

Those who listened to Pickle are now in Sushi, getting 0.25% trade fees and pathetic 28% APY.

Those who knew that the rewards will continue, stayed in Uni pool, they are exclusively earning PICKLE APY: 71.16% boosted up to 2.5x + higher 0.3% trade fees + good volume and will never vote to reduce these very high rewards.

Can we have both Uni and Sushi pools with incentives? Why not reactivate that Uni pool?

1 Like

Thanks chimaera. Now that we’ve had time for people to read and comment is there something the Core team want to propose?

2 Likes

Clintos I believe the solution would be to create a gauge so DILL holders can vote on-chain for rewards to go to PICKLE-ETH SLP, same as they did in the past for the PICKLE-ETH LP in Uniswap. Originally, the engineering problem is that PICKLE-ETH SLP is staked on SushiSwap, where it gets dual-rewards.

Two solutions:

  • (1) create a jar that auto-compounds PICKLE-ETH SLP dual rewards. The Treasury would probably collect a performance fee in order to cover its gas costs. The gauge would then reward the pSLP(PICKLE-ETH) token.
    • pros: simple to implement.
    • cons: takes performance fee, isn’t really symbiotic with SUSHI as it sells their rewards for PICKLE-ETH SLP (counterargument: creates more liquidity depth aka less slippage and potentially more volume on SushiSwap), and also dumps PICKLE for ETH and then rewards that with more PICKLE on top (whatever users vote).
  • (2) create a “root gauge” that can be voted on. This gauge would then feed the Pickle rewarder that drips the rewards into Sushi’s MasterChefV2. This is similar to how Curve lets people vote on mainnet to send rewards cross-chain to the “mini Curve” branches in sidechains/L2s. We would need to also constantly poke the PICKLE rewarder contract feeding into Sushi’s MCV2 to change the rewards speed (maybe once a week, this could be possibly automated thru a keeper bot).
    • pros: elegant, doesn’t dump either PICKLE or SUSHI, increases base APR for everyone.
    • cons: complex to implement.

At this point it’s probably best to get @Larry_Cucumber’s input.

5 Likes

Would the “root gauge” make it easier to vote on directing emissions to other chains? If so this would kill 2 birds with 1 stone

2 Likes

In theory, yes. I have to look at the rest of Curve’s implementation but I assume for non-mainnet Curve relies on some degree of human coordination to send the rewards cross-chain to the appropriate gauge. Pickle uses a slightly different architecture but it is still doable.

4 Likes

I believe you can also do a strategy can be made that doesn’t autocompound. It is just a pass through receipt token so that can be deposited into the gauge for on-chain rewards.

is this a vote so that we can determine a solution. If so, this seems kid of useless.

The primary concern for Sushi was so that PICKLE trades on Sushi, not on Uni. The amount of SUSHI rewards for Pickle is already small and Sushi could be ok with some SUSHI getting autodumped.

Maybe an additional PICKLE-SUSHI farm could make Sushi community happy and make them happy with ETH-PICKLE Sushi autodumping.

Will the solution for the PICKLE-ETH on Sushi have a boost for DILL holders? It seems like PICKLE-ETH got crowded when insane APYs were printed initially. Now, instead of fair 50-70% APY for such liquidity provision, the reward is 26.6%.

What happens to those who did not follow the advice to migrate? Why are they still getting comfy 68.44-171.1% APY (+higher 0.3% Uni fees + proportionally more volume) while the obedient others are getting 26.6%? Should PICKLE rewards for the UNI farm get manually removed? Some users knew this is what is going to happen and took advantage. If nothing can be done, maybe we should add the Uni PICKLE-ETH to the interface and open it for everyone.

In Discord it has been said multiple times that this APY for UNI PICKLE-ETH will go down when people vote with their DILL for something else. Why would they vote for something else while they are getting exclusive 68.44-171.1% APY in perpetuity as a reward for holding some insider knowledge?

1 Like

This is a vote to get the devs to prioritize a fix so that we can add sushi LP to gauge vote so we can vote with our DILL for increased yield. Right now we can’t do that and the UNI pool is still earning a lot.

2 Likes

Hi @Clintos

Would it make you happy if we re-enable the uniswap farm in the UI first (but not for voting) and thus giving everyone access to those aprs, as a first step? We have other ideas on how to fix this in the future, but they’d require a lot more time.

1 Like

I don’t know about Clintos but I think it would be fair :slight_smile:

here is a related proposal: [RFC] Allocating a Portion of Gauge rewards for $PICKLE Pool 2 incentives

1 Like