[DCP-1] Extend farming rewards on Sushiswap 2x Farm

Summary The initial Sushiswap 2x Farm was launched on the 17th December 2021 and was set to run for 30 days with 936,237 RADAR rewards per day. As the deadline is approaching for the end of the current farming rewards period (15th January 2022), we should define for how long to extend the rewards period for and how much rewards should be offered.

Motivation Rewarding Liquidity Providers (LPs) through farms is very important to ensure deep depth and enable the execution of large trades with the lowest slippage possible. We’re still early and focusing on increasing liquidity on decentralized exchanges is very important.

Abstract At the time of publishing the proposal on Snapshot, the RADAR-ETH pool on Sushiswap has $2.6M liquidity. When deciding the amount of rewards for liquidity providers, it is important to consider how that will affect the liquidity amount in the pool. A big reduction in rewards will almost certainly result in a reduction in total liquidity providers. Because the amount of liquidity in the pool is still quite small, we need to keep the rewards going and focus on maintaining and bringing in more liquidity.

Doing so will help RADAR to develop price infrastructure and price finding foundation and bring price stability.

Since RADAR is still a newborn and there is only one farm for incentivizing LPs so far, there are not too many data points to help us make a very educated decision, so we’re gonna plan the next steps based on the results we had so far. If this proposal passes, we will gather more intelligence and it will help us make better decisions going forward.

The Sushiswap 2x Farm is flexible and rewards can be adjusted on an ongoing basis depending on the results. Lowering or increasing the rewards is possible, even while rewards are live.

The current proposal is to extend the Sushi 2x Farm rewards for 3 months, starting from 15th January 2022. Based on other community discussions, there are indications that more farms could be launched in the foreseeable future.

Specifications - Math

• Current LP RADAR rewards: 936,237 RADAR/day for 30 days (Total: 28,087,110 RADAR)
• Proposed LP RADAR rewards: 800,000 RADAR/day for 90 days (3 months) (Total: 72,000,000 RADAR)

Benefits

• Maintaining and potentially increasing liquidity in the RADAR-ETH pool
• Increasing depth of the pool and lowering slippage
• Sudden drop in liquidity if rewards are expiring
• Gain investors exposure
• Develop a price infrastructure and price finding foundation
• Price stability

Drawbacks

• Distributing a large amount of RADAR

Vote

• FOR - Extend farming on Sushiswap 2x Farm for 90 days (3 months) with a total of 72,000,000 RADAR at a rate of 800,000 RADAR per day.
• AGAINST - Do not extend farming on Sushiswap 2x Farm

Forum Proposal https://forum.dappradar.com/t/dcp-1-extend-farming-rewards-on-sushiswap-2x-farm/101