Author: Core Team
Reference: SIP-33
Created: May 16, 2023
Labels: Product-Features
Summary
Earlier in 2023, SperaxDAO decided to direct SPA emissions from the treasury, meant for direct rewards to veSPA holders, to bribing Sperax pools on Gauge. We have already passed the SIP to add SPA/USDs and USDs/USDC Camelot farms to Gauge and bribe them. It will help in strengthening USDs and increasing its adoption.
Abstract
Every week veSPA voters are bribed 383,550 SPA in the ratio of 3:1:1 to SPA/USDs, USDC/USDs, and plsSPA/SPA respectively while maintaining a 4:1 bribe-to-emission ratio for the USDC/USDs farm. This SPA should be used more prominently and assertively to drive USDs growth and bring new adoption.
Motivation
Since the start of SPA Gauge, USDs total supply has decreased from $2M to $1.8M. In the meantime, Sperax has distributed over 40M SPA amounting to over $300K at the current SPA price.
Bribing veSPA holders in a predetermined manner and without assessing the market dynamics every week is improper utilization of resources. Since our target is to increase USDs adoption which will help in growing the Sperax ecosystem and its participants, we must rethink our reward mechanism to direct emissions.
Overview
Apart from maintaining the target to make SPA deflationary, SperaxDAO should ensure that the emission is invested back into the ecosystem and contributes directly towards increasing the USDs adoption and supply.
By proportionating gauge emissions with veSPA voted in the gauge, the SperaxDAO can incentivize the participant to increase liquidity and maximize staking.
The bribes provided by the SperaxDAO treasury should also have a looping effect and should be directly proportional to the votes USDs trading pairs receive.
It all means that 383,550 per week of bribes will stop. The SPA allotment for gauge emissions is ending on the 21st of May. The new rewards and bribe system should follow a reward rate per vote mechanism to incentive more staking and establish looping of SPA to counter the inflation in circulating supply.
Every 1 SPA staked for four years should bring in 10% of yearly returns and a 6% boost for SPA/USDs farm in bribes from Sperax treasury. The veSPA votes a Gauge receives will decide the bribes of the next cycle. It will ensure more staking since it will increase the rewards available
Hence the bribes received by Sperax farms will be calculated such that if X Gauge receives 100 million veSPA votes, then in the next cycle, the bribes allocated to it will be
(100*10^6)*(2.5/100)*(7/365) SPA in bribes
Technical Specification
- Stop 383,550 SPA in bribes
- SPA bribes for every cycle will be calculated based on veSPA votes received by the farm in last cycle such that it maintains a 10% yield on
[(number of veSPA votes received)/4]SPA with a 6% boost on [(number of veSPA votes received)/4]SPA for SPA/USDs farm - SPA emissions, to be directed towards each farm, will be calculated such that each farm will receive 0.0035 SPA for every veSPA vote per week
- Sperax will bribe SPA/USDs UniswapV3, SPA/USDs Camelot, USDC/USDs UniswapV3, USDC/USDs Camelot & plsSPA/SPA UniswapV3.
- The bribes and emissions will continue as before till all mentioned specifications have been implemented
The Voting
For
Revise SPA gauge emissions and bribes as per mentioned specifications
Against
Continue with the same emission and bribe for another 90 days
- For
- Against
0 voters