Discussion for Farming proposals

Fellow bees:

We have more than two weeks until current farming rewards will expire on the following farms.

300HNY for HNY-wXDAI 150% return
200HNY for HNY-STAKE 110% return
100HNY for HNY-wETH 110% return currently

My initial report with a suggestion for future rewards is at Honeyswap LP incentives. Initial report

What I am suggesting is the following:

150HNY for HNY-wxDAI lowering return to 75%
100HNY for HNY-STAKE lowering return to 50%
50HNY for HNY-WETH lowerig return to 50%

and adding.

50HNY for wETH-wxDAI

total 400

This will lower total Honey distributed to farming from 600-400.

Option two is to leave the numbers the same

300 HNY-wxDAI
100 HNY-wETH

50 HNY for STAKE-wxDAI
50 HNY for wETH-wxDAI

total 700

Option three is to go towards the middle

225 HNY-wxDAI

50 wETH-wxDAI

total 550

Optionally we could add the xMOON-wxDAI pair for
25-50 HNY

We need to come to some sort of consensus on these before we make proposal posts to be voted on because all of these are going to take at least a few days to pass via conviction voting.

I have a few concerns here:

  1. community coming to consensus in a timely manner and putting up proposals
  2. coordination with voting so both pass and come on line providing for a smooth transition.

This is why I am posting this follow up. First to make a co-herent proposal, secondly to garner consensus and thirdly once we get consensus to get proposals up and passed so transition on the first three farms is smooth.


Adding more info for this discussion from another post:

So far while there is evidence that HNY incentives increase liquidity and trading there is no evidence regarding what rate of return will retain liquidity and volume.

Right now people seem to be overly hot to pay out at rates of 100-200% return just to get ‘some’ liquidity. I don’t think anyone has looked at returns offered by other LP staking contacts (these are running on rough averages in the 20-40% ranges - for the most part)

Also the prices on these due to the high yields are tending to ‘decay’.

If the return is 100%+ and the price decays to 50% did you really earn anything?

The above is the whole point of using conservative numbers like I posted.

  1. They are probably more sustainable.
  2. The reduced rate of inflation may mean a more stable Token price
  3. The rates are not overly competitive.
  4. There is no guarantee paying more will get more liquidity or trading. In fact this was one reason I was for dropping the 3 farm payouts to measure any change in farming activity/liquidity and/or volume. 50% is still higher than most of the other major farms in existence.

It seems like we’d still be heavily weighting HNY/* pairs with our rewards in all three of these options. Unless there’s some evidence that this actually results in more liquidity / value coming to our platform I’d prefer to see us tilt the rewards toward more “core” pools, that’s wETH/wxDAI, wETH/wBTC to me at least.