As announced in March 2022, ApeSwap started partnering with Gauntlet to optimize BANANA emissions for BNB Chain farms. After several months of analysis and model testing, Gauntlet came to the conclusion that ApeSwap may be more “elastic” on certain farming pairs than others. Specifically, this means that ApeSwap could be overspending emissions on certain pairs and could reduce them without major impacts on the TVL and/or volume being produced from that farm.

The Approach

ApeSwap would like to set up an “Excess” farm, which would serve as a custom farm that collects BANANA emissions that are deemed to be unnecessary based on Gauntlet’s machine learning & elasticity models. Any BANANA collected by this farm would never enter circulation, unless another governance proposal is passed with a clear intent on usage and allocation.

The multiplier & amount of BANANA allocated to this farm would change on a weekly basis as per Gauntlet’s recommendations, taking into account that ApeSwap does not want to compromise key values such as TVL and volume generated.

This is a powerful emissions reductions approach, as it allows ApeSwap to have more immediate impacts on inflation without needing to reduce the overall amount of BANANA emitted – and without damaging our core service offerings. It also sets ApeSwap up to collect data and learn about emissions reductions in an experimental environment as we drive other emissions changes forward.

A Simplified Example

To make things tangible, here is an oversimplified (and completely hypothetical) example to give an outline of what this proposal is seeking to do.

Let’s say we have 2 BANANA farms with the exact same stats. Farm A & Farm B. Those stats are:

• Each farm is allocated $100 in daily BANANA incentives
• Each farm generates $50 in daily trading volume revenue

Gauntlet has determined that Farm A is more sensitive to incentive changes than Farm B. Specifically:

• If we change Farm A to $75 in daily incentives, it would drop to $10 in daily revenue.
• If we change Farm B to $75 in daily incentives, it would stay at $50 in daily revenue.

Naturally, we DO NOT want to adjust Farm A, because that will negatively impact ApeSwap DAO revenue. We DO want to adjust Farm B because that will save us from emitting BANANA without impacting revenue.

Voting Options

Option 1: Approve Proposal

Set up an “Excess” farm and allow Gauntlet to optimize weekly with ApeSwap Core Team oversight.

Option 2: Reject Proposal

Do not set up the “Excess” farm.