Proposal 4 - Allocations Points Changes

Goals:

• Increase $MILK token buying pressure.
• Increase the APR of the $MILK farms.
• Increase $MILK liquidity.

Introduction: The actual Milk Token liquidity is below $50k USD, and this proposal consists in focusing the Protocol’s incentive mechanisms in increasing the token liquidity to enable a better price stability.

A previous review of the DAPP's allocation points, APRs, and liquidity was conducted: FARM: COW-BUSD LP (x35, 58%, $16,529) MILK-BUSD LP (x14, 56%, $6,724) MILK-BNB GLP (x14, 116%, $3,224) MILKBAR: COW (x25, 39%, $17,640) MILK (x9, 18 %, $13,749) GOL (x3, 49 %, $1,605)

Arguments:

• $COW already has an automatic liquidity mechanism and does not need additional incentives to increase liquidity.
• COW-BUSD liquidity pair represents <20% of the total COW Liquidity.
• The Farm COW-BUSD LP is the one that has the most allocation points (35%).
• By reducing the farm allocation points, we could increase other farms on DApp without increasing Milk Token Emissions.

The proposal: The proposal consists in the following changes in the allocations points of the masterchef:

• Reduce COW-BUSD LP from 35x to 15x
• Increase MILK-BUSD LP from 14x to 24x
• Increase MILK-BNB GLP from 14x to 24x
• Other pools won’t be affected.

If the proposal is rejected, everything remains as it is.