Snapshot voting link - click HERE for voting.
Voting window will begin 7/20/22 at 7:30PM ET and run through 7/23/22 at 7:30PM ET.
Author(s): Sperax Core Team
Reference: Mentioned in recent AMAs
Created: Jul 18, 2022
Redirect 20% of daily emissions from the USDs - SPA farm to a new APR USDs - USDC farm.
To ensure adequate liquidity for peg stability, the Sperax team is proposing to launch a new incentive for users to park liquidity into the USDs - USDC Uniswap pair on Arbitrum. Instead of adding to the daily emissions, we propose to redirect emissions from the existing USDs - SPA pool to this new one.
To ensure USDs keep it’s peg, there must be adequate liquidity on DEX’s to ensure arbitrage is profitable. We could launch a new farm which would require additional SPA emissions, and potentially SPA sell pressure, or we could redirect from the existing USDs - SPA farm. We propose to redirect instead of adding to emissions.
Currently the Reward Rate for the SPA-USDs farm is
- For all users (lockup+no lockup) = 466.663K SPA/Week
- Additional reward rate for lockup users = 233.331K SPA/Week
20% of this pool will be redirected to the new farm to incentivize USDs - USDC liquidity.
So reward rate for the new USDC-USDs farm will be
- For all users (lockup+no lockup) = 0.2 * 466.663K SPA/Week
- Additional reward rate for lockup users = 0.2* 233.331K SPA/Week
New reward rate for the existing SPA-USDs farm will be
- For all users (lockup+no lockup) = 0.8 * 466.663K SPA/Week
- Additional reward rate for lockup users = 0.8* 233.331K SPA/Week
Sperax team will use the Multisig to redirect rewards from the USDs - SPA pool to the USDs - USDC pool. To fund this pool 20% of the daily emissions will be redirected from the existing pool to the new pool. There will be 93,332 SPA/Week going to all users and an additional 46,662 going to lockup users as a bonus. This number was calculated by taking the weekly reward of the current farm for all users 466,663 *0.2 and the weekly lockup bonus of 233,331 *0.2.