Enable LKSM/kUSD and LKSM/KAR pairs & Incentive Program, adjust KSM/KAR and KSM/kUSD incentive programs

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Summary

We propose to:

  • Enable LKSM/kUSD Bootstrap
  • Enable LKSM/KAR Bootstrap
  • Enable Liquidity Mining Programs for LKSM/kUSD and LKSM/KAR pairs
  • Adjust Incentive Program rewards for KSM/KAR and KSM/kUSD pairs

1. List LKSM/kUSD on Karura Swap via Bootstrap

Listing LKSM/kUSD will:

  • support LKSM as collateral
  • encourage the growth of kUSD
  • facilitate trading giving more options for Redeeming LKSM.

2. List LKSM/KAR on Karura Swap via Bootstrap

Listing LKSM/KAR will:

  • provide KAR holders more means for Liquidity Provision and;
  • facilitate trading by creating more arbitrage opportunities between different liquidity pools

3. Enable Incentive Programs LKSM/KAR and LKSM/kUSD

LKSM/KAR Pool

  • Total ~62,500 KAR rewards per month
  • Loyalty Bonus: 80%
  • The program is expected to run for 6 month
  • Reward amount is expected to be adjusted monthly

LKSM/kUSD Pool

  • Total 125,000 KAR rewards per month
  • Loyalty Bonus: 80%
  • The program is expected to run for 3 month
  • Reward amount is expected to be adjusted monthly

4. Adjust Liquidity mining rewards for KSM/KAR and KSM/kUSD pairs

:warning: Please check the details in Updated Proposal

KSM/KAR Pool - Adjust rewards

  • incentive will be halved to encourage more cost-efficient KSM pairs
  • loyalty reduce from 50% to 30%

KSM/kUSD Pool - Adjust rewards

  • incentive will reduce 40% to encourage more cost-efficient KSM pairs
  • loyalty reduce to 10%

Hello,

Can we have details of why reduce the incentive of the 2 previous pool will encourage a more cost-efficient KSM pairs ?

Can we have details of why reduce the Loyalty Bonus ?
And how it will work for people who have already farm ?

Because for people inside KSM KAR, if they have currently 100 KAR in rewards, they know than at the end of the timer they will have 100 KAR in bonus (as it’s 50% of all KAR distribute).
So here we say to them than no you will finally have only 42 KAR in bonus.
(100 KAR * (100% / 50%) = 200 KAR, change to 100 KAR * (100%/70%) = 142 KAR)
The same for KSM kUSD, if they have currently 100 kar in rewards, they hope 42 KAR in bonus, and finally will be only 11 KAR in bonus.
(100 KAR * (100%/70%) = 142 KAR, change to 100 KAR * (100%/10%) = 111 KAR)

Do we need also to include inside this calc the reduction of the incentive give to the pool ?
In this case, it will be less than my calc.

If I have do error in my calcul, don’t hesitate to give me the exact calcul for someone with 100 KAR rewards already, how many they will received at the end of the bonus before this update and after this update. To be sure of the impact for user who have already farm.

I don’t understand the logic to put new pool with 80% loyalty bonus, so very high loyalty, and reduce the loyalty for the current pool. It can make think than this 80% bonus will be not applied because will be updated before the end of the timing.

No Risk - No Fun

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Not a fan of this gents.

Feels dirty to change contract details after the fact.

If you want to increase loyalty bonuses in other pools then find a way to generate those fees to give out.

This just set a precedent that OG users can have their financial contract changed just to chum the waters for new fish.

With great respect for all members of the community.
:watermelon:

TheOyster.

1 Like
  1. We are not taking off the incentives, though we are migrating them from KSM to LKSM pools.
  2. Loyalty bonuses earned already will not be reduced or taken away

Sorry for being not clear in this proposal, we will be more detailed on it

I have to agree with TheOyster here.

There is no such thing as “loyalty bonuses earned already”. The loyalty bonus that liquidity providers are expecting to receive includes an indeterminate amount of tokens resulting from the forfeited bonuses of people who claim before the program ends.

Unless I completely misunderstand the workings of the loyalty bonus, this means that by continuing to leave my rewards unclaimed I may receive some portion of the bonus pool from claimed rewards that have not been earned yet.

Can you explain how this proposal does anything other than reduce the size of the loyalty bonus pool and the returns that liquidity providers will eventually receive?

1 Like