SIP-31 Reduce the fee for launching farms with Sperax Demeter protocol

[Sperax]

Title: Reduce the fee for launching farms with Sperax Demeter protocol.
Author: Core Team
Reference: Demeter dapp, Demeter protocol docs
Created: January, 25th, 2023
Labels: #Product-Features

Simple Summary

The proposed change will decrease one-time entry fee paid by projects/DAOs launching their farms with Demeter protocol.

Abstract

The proposal sets the fee for a launch of Demeter farms at the level of $50 for farms launched against USDs or SPA and $100 for farms launched against other tokens.

Motivation

The proposed change will decrease the entry barrier for new projects - in comparison to the current fee level - $100 for a farm launched against USDs or SPA and $500 for a farm is launched against other tokens. At the same time, the new fee for launching a farm against USDs or SPA stays less than the fee for launching a farm against non-Sperax tokens.

Overview

Demeter is a protocol developed by Sperax, it is an element of the Farming-As-A-Service infrastructure that helps DAOs to launch and manage decentralized exchange liquidity on Uniswap v3 in a low code/no code manner.

Since its inception on November 2022, 12 farms have been launched with Demeter, including:

• 6 farms launched by Demeter Genesis partners seeding the partners’ tokens against USDs, these farms emit rewards both in partners’ tokens and SPA (2 of those farms were reopen with new parameters).
• 3 farms launched by Sperax
• 1 farm launched by a non-partnering project that emitted only the project’s rewards, but not SPA.

The proposal is to change the one-time launch fees from

the current levels:

• $100 for farms launched against USDs or SPA
• $500 for farms launched against other tokens

to proposed new fee levels:

• $50 for farms launched against USDs or SPA
• $100 for farms launched against other tokens

This will facilitate access of DAOs to the Demeter services, including those DAOs that potentially might launch farms against tokens other than SPA or USDs. At the same time, the fees for launching farms against USDs or SPA stay more favorable.

Technical Specification

Set one-time Demeter farm launch fee at the level of:

• $50 for farms launched against USDs or SPA
• $100 for farms launched against other tokens

Voting

Yes: Set one-time Demeter farm launch fee at the level of $50 for farms launched against USDs or SPA and $100 for farms launched against other tokens.

No: Keep the current fees unchanged.

• Yes
• No

[Matej221]

Demeter is young, we can vote later for higher prices. I voted yes!

[tylerpol]

Do we really want projects with less than $100 available to them to be launching demeter farms? I worry we’re going to get a lot of dickbutt token forks spamming up the product :/

[subh]

Agree with you on that @tylerpol . Once we see that happening we will improve the front end to make sure users understand which tokens are trustworthy and which are spam tokens. This would be similar to how Uniswap displays a warning for tokens which are not listed in their token list.

[tylerpol]

Well I’m curious though, what is the cross-section you’re targeting with this change then? What kind of projects are going to both not be able to afford $100 to launch on Demeter and also be legit enough to be labelled as “trustworthy” by the Sperax team? What kind of financial condition are you expecting the target audience of Demeter farms to be in?

[subh]

Great question. I think the idea is to make it as seamless as possible. The whole point of fee was kept to avoid unnecessarily clogging of the protocol contracts and front end in the beginning. Maybe in future the community will vote to completely remove any fee.

[tylerpol]

I’m not sure you’re really addressing my question. I know you’re saying that you want to make the process as seamless as possible. What I’m asking is - what kinds of projects are there for which $50 is seamless, but $100 is not seamless? And are those projects really ones that you want to launch Demeter farms?

[subh]

There’s not a lot of difference between 50 and 100. But there’s a ton of difference between 500 and 100. Apart from the partners we have had so far we want to see other protocols in arbitrum explore Demeter. Not sure which exact protocols would be interested as of now.