The proposal

Change the multipliers of two staking pools:

1. RBTC/BDX - an increase from x1 to x2
2. BDUS/XUSD - a decrease from x1 to 0.8x

Background

The staking pools multipliers have all been x1 (except for two weeks that we promoted the new XUSD/BDUS pool with a multiplier higher than x1).

The multiplier's job is to determine the weight of the pool from the sum of all the staking pools.

In other words, the higher the multiplier is, the more tokens this pool gets to distribute compared to the other pools.

When all the pools have the same multiplier (like it is right now), all the tokens are distributed equally between them.

According to Blindex's tokenomics, in year one of the protocol, 4,200,000 BDX are being distributed as staking rewards.

That's about ~11,520 BDX/day.

Currently, all the pools have a multiplier of x1, and we have 14 pools (already including the pools approved in BIP-002), which means that each pool distributes ~823 BDX/day.

How will this proposal change that?

Executing this proposal will change that.

Here are the new emissions of BDX per pool if this change is approved:

1. BDX/RBTC - multiplier of x2 - ~1,207 BDX/day.
2. BDUS/XUSD - multiplier of x0.8 - ~644 BDX/day
3. The rest of the pools - multiplier of x1 - ~805 BDX/day

Why are we suggesting to do that?

BDX/RBTC

BDX is required to mint BDStables. That's the beauty of it and why it has utility by design. RBTC is the native token on RSK, which means that all users must have it to pay the gas fees. Enriching this specific pool with more liquidity will benefit all these users as the price impact for swapping on the pool will decrease, thus making these trades less expensive.

In addition, the Blindex team is in talks with several on/off ramp solutions to start supporting our platform. An on/off-ramp solution means you could buy the Blindex tokens with fiat (via a bank transfer or your credit card). During this process, the on/off ramp solution will mint new BDStables (thus increasing the total supply of the tokens). They'll swap RBTC for BDX in more significant amounts than we've experienced. To encourage their users to do so, the price impact of this pool must go down. For that reason, we must have more liquidity in this specific pool.

Increasing the multiplier of the pool will encourage users to provide liquidity to it over other pools, thus making this dream a reality.

BDUS/XUSD

This pool is currently the largest pool on Blindex. The pool is stable-to-stable, with both stables pegged to the same fiat currency. Because of that, this is the lowest risk pool on Blindex. By far. Having the same multiplier as higher risk pools doesn't make sense. In addition, now that we're increasing the BDX/RBTC pool, it only makes sense that this pool will absorb some of the emission reduction from the other pools.

Execution

If approved, the team will execute the change in the multipliers so the incentives to stake on each pool will adjust accordingly.