Simple Summary/ Abstract
Update the policy for addition of farms to the Sperax gauge. All farms that wish to receive Sperax tokens through the gauge will have to go through the current governance process to get listed on the Sperax gauge. Empower the current sperax team to remove a farm from the rewarder and gauge if the proportion of USDs or SPA as a percentage of overall TVL for the farm is less than 20%.
Sperax gauge and rewarder was meant to be a permissionless process which allows for a fair reward allocation process. But currently the process is highly susceptible to getting spammed since it’s easy for anyone with little to no resources to create a Demeter farm and push the team to add it to the gauge. While every other gauge, including Curve and Frax have a governance check in place to add farms to the gauge it was not considered initially for the Sperax gauge to keep the process simple. However it has come to notice that users are trying to create tokens just for the sake of farming SPA tokens through the SPA gauge and rewarder. If this is left unchecked it would cause a lot of pain for real LPs and protocols. Demeter should still remain permissionless and allow all users to be able to create farms, but which farms among them should be added to the SPA gauge should be decided by veSPA holders through governance.
Another issue that has come to light is that some farms are not successful in attracting TVL for USDs. And in some cases some of the Demeter farms go out of range such that the LP positions that are in the farm mostly consist of one single token. These farms are not providing any value to the Sperax ecosystem and the current administrations for the gauge should be allowed to remove these farms from the gauge. However once these farms are back in range they should be added back to the gauge without the need for a governance proposal.
- All Farms that are added to the Sperax Gauge have to pass through the Sperax governance process
- Farms which are out of range or have less than 20% of their TVL component in the form of USDs or SPA can be removed from the Sperax gauge and rewarder by the admin multisig holders
- Farms which are out of range and come back into the range can be added back to the Sperax gauge and rewarder by the admin multisig holders