[DEXTF-3] Liquidity / Investment Mining Program

INTRODUCTION

Currently Portfolio Manager, have been disproportionately incentivised and Arbitrageurs (through the liquidity mining to LP) have also been incentivised more than Investors.

Investors are the main source of liquidity for a Fund Management protocol and bootstrapping a vibrant investors community should be the main goal of the Mining. In the initial stages of DEXTF we decided to skew the incentive toward Portfolio Managers to create a large number of funds that Investors can choose from and we believe this has been successful. Now we think it’s time to start to skew the rewards towards Investors.

For a detailed description of the proposed change please refer to the medium article.

THE PROPOSAL

We are proposing the following change to the Liquidity and rewards program:

INVESTOR MINING

We propose to eliminate the current reward for top Investors and substitute with a much more generous rewards for Amounts Invested, essentially boosting the performance of the funds for Investors.

General:

• Allocate [450k] DEXTF per month (this amount will decrease over time to account for inflation)

• Escrow for [9] months (once the staking contract is developed)

Immediately:

• Allocated proportional to Investor_SumOfFund_AUM / Total_Fund_AUM

• Manually calculated daily and streamed over 2 months starting 15th of month

PORTFOLIO MANAGER MINING

We propose to eliminate the current gamified reward for Portfolio Managers and simplify it substantially with only 2 rewards, one for AUM and one for Performance.

General:

• Allocation 1 - [100K] DEXTF per month for AUM
• Allocation 2 - [1.2m] DEXTF per year for Performance
• Escrow for [12] months (once the staking contract is developed)

Immediately:

• Allocation 1 - proportional to Fund_AUM / Total_Fund_AUM
• Manually calculated daily and streamed over 2 months starting 15th of month

LIQUIDITY MINING

We propose to greatly simplify the LP rewards, eliminate the slashing for exiting Liquidity Pools early and skew the rewards towards DEXTF-XTF FUND LP

General:

• Allocate [37k] tokens per day, (this amount will decrease over time to account for inflation)

  • 30% of Tokens to DEXTF-ETH pool
  • 15% of Tokens to the sum of all XTF FUND-ANY tokens pools
  • 55% of Tokens to the sum of all XTF FUND-DEXTF pools

• Escrow [6] months (once the staking contract is developed)

• Only white-listed LP are eligible for Mining

  • Fund can NOT have more than 50% allocation to single token (or tokens pegged to each other, or tokens pegged to same value, for example USDC, USDT and DAI will all form part of the same threshold)
  • Fund can NOT be paired with any token that has more than 20% allocation within the fund, except for the DEXTF token which can have higher weight but still limited to 50% max.
  • Funds MUST have at least [10%] allocation to DEXTF token to be considered a XTF FUND-DEXTF pool

Immediately:

• Allocated proportional to LiquityProvider_AUM / Total_LP_AUM
• Manually calculated daily and streamed over 2 months starting 15th of month

If the change is approved it will take effect from the 15th Feb