Abstract:

Sushi has recently announced that the DRC / ETH pool (https://app.sushi.com/add/0xb78b3320493a4efaa1028130c5ba26f0b6085ef8/ETH) will be incentivized with their native token SUSHI through their Onsen program. In order to maintain these rewards, the DRC Onsen pool must continually receive votes from oSUSHI holders.

Through our earlier partnership with SUSHI, the Dracula DAO will receive 2% of all SUSHI earned through Dracula Protocol stakers. This xSUSHI can be staked for oSUSHI, which will be used to vote for continuing rewards on the DRC Onsen pool through our DAO.

Proposal:

Migrate the current incentives, which are a portion of each drain to liquidity providers for the DRC / ETH pool, from Uniswap to Sushi. Use all xSUSHI gained from the DAO to convert to oSUSHI, which will be used to vote for continued rewards on the DRC Onsen pool.

Pros:

Users will be able to stake their DRC/ETH SLP through Dracula Protocol to earn both ETH and SUSHI. This will consolidate rewards into a higher APR for our liquidity providers. Incentivizing only one pool will also consolidate rewards into a single platform, allowing for greater liquidity depth.

2% of the SUSHI earned from this pool will be converted to oSUSHI to continue voting for the DRC Onsen pool, which will enable rewards for the foreseeable future.

Cons:

Current liquidity providers would have to migrate from Uniswap to Sushi, which will cost gas. A tool is available for this migration here: https://app.sushi.com/migrate. We will also be relying only on Sushi for the majority of our liquidity, which centralizes the risk if an exploit were to occur. SUSHI rewards earned from this pool will not be able to be included in our drain, so users will be earning both ETH and SUSHI that will have to be harvested manually.

Note: If you are a SUSHI holder, you can vote yourself to continue DRC rewards through the oSUSHI Onsen voting program.

Vote:

Yes - Incentivize the DRC / ETH Sushi pool with a potion of the drain and auto-harvest and compound the SUSHI rewards.

No - Keep the current incentive for the DRC / ETH pool on Uniswap and have the SUSHI rewards be separate.