Activating Yield Farming for V2_HBAR/HLQT, V2_USDC/HCHF, and V1_HBAR/HCHF Pools

Request for Comment
1
  • 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.

Links:

documentation https://docs.hliquity.org/
Sentinel Report HCHF: Sentinel
Sentinel Report HLQT: Sentinel
Website: https://hliquity.org/
X: x.com

Voting:

  • Yes: Activate yield farming for all three pools.
  • No: Do not activate yield farming for these pools.
1 Like
2

If this will increase TVL of Hedera network and bring additional volume to saucerswap then I am ok with it.

1 Like
3

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.

2 Likes
4

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.

For reference:
V1: Farm Weights | SaucerSwap
V2: LARI Weights | SaucerSwap

1 Like