Title: Activating Yield Farming for V2_HBAR/HLQT, V2_USDC/HCHF, and V1_HBAR/HCHF Pools
Author(s): GlobeBit & HLiquity Team
SaucerSwap Voting Interface: na
Related Discussions: na
Submission Date: August 12th, 2024
Summary:
Dear SaucerSwap community, we’re excited to propose activating yield farming for three critical liquidity pools: V2_HBAR/HLQT, V2_USDC/HCHF, and V1_HBAR/HCHF. Your input is invaluable, and we’re looking forward to working together to enhance the Hedera ecosystem.
Background:
Protocol: HLiquity
Pools:
V2_HBAR/HLQT: A crucial pool pairing HBAR with HLQT.
V2_USDC/HCHF: Facilitates stablecoin trading between USDC and HCHF.
V1_HBAR/HCHF: Provides liquidity for trading between HBAR and HCHF.
Purpose: Activating yield farming will incentivize liquidity provision, benefiting traders and the overall ecosystem.
Proposal Details:
Yield Farming Activation: We propose initiating yield farming for the specified pools and would love to hear your thoughts on the appropriate emission weights to balance incentives across the ecosystem.
Benefits:
Enhanced Liquidity: Ensures sufficient liquidity for key trading pairs.
Improved Trading Efficiency: Reduces slippage and enhances trading conditions on SaucerSwap.
Downside:
Reward Dilution: Introducing new pools may dilute rewards for existing farms.
I can see the case for yield farming for V2_USDC/HCHF & V1_HBAR/HCHF. It would be similar to the V2 stablepools and V1 HBAR/USDC pool. Yes, there would be a discussion on appropriate weights. But I don’t have the numbers in front of me to make an informed comment on it just yet.
I’m still having some difficulty for the case for V2 HBAR/HQLT. Outside of the V2 stablecoin pairs, Bridged Network token/(HBAR, Sauce, USDC), token/Single-sided staked token, USDC/ (Hbar, Sauce), & HBAR/xSauce, just one of them (V2 HST/HBAR) has Sauce emissions weight. KARATE/HBAR, CLXY/HBAR, JAM/HBAR, etc currently does not have have Sauce weight, while have their own project tokens as LARI rewards (even some tokens going to V2 USDC/HBAR at some point).
But I’m willing to listen to any additional reasoning the team might provide.
Thank you for the valuable feedback (I also had discussions with the community). Based on the input, I’m refining the proposal to focus exclusively on the V1 HBAR/HCHF yield farm, as LARI is the designated incentive model for V2 pools. There will be no changes to the ongoing LARI campaigns for the V2 HBAR/HLQT and V2 USDC/HCHF pools.
For the V1 HBAR/HCHF yield farm, I will propose a 2% weight for SAUCE and HBAR emissions. Stablecoins are crucial for the Hedera ecosystem, and this allocation will support their growth. Given that the HBAR/USDC farm has a weight of 6.50%, 2% seems appropriate for the HBAR/HCHF pool.