Proposal: Pause & Stash EXTRA Emissions for Extrafi LYF

Background

Currently, lending emissions for Extrafi Leveraged Yield Farming (LYF) are allocated through community voting every four epochs. This mechanism allows the community to decide how incentives are distributed across lending pools supporting LYF strategies.

However, as total emissions have decreased over time, the amount available each epoch has become relatively small. At the same time, market demand for leveraged farming is currently limited.

Given this situation, it may be worth reconsidering how these emissions are used to ensure they remain effective.

Rationale

1. Emissions are becoming too small to be impactful

With lower emissions available in each epoch, the incentives distributed to LYF lending pools are increasingly limited.

Instead of spreading small incentives across multiple pools, it may be more effective to accumulate them and deploy them when they can have a stronger impact.

2. Current market conditions

In the current market environment, demand for leveraged farming is relatively muted. Small ongoing emissions may not significantly influence liquidity or user activity.

Proposed Plan

1. Temporarily pause lending emission allocation for LYF

We propose temporarily pausing the lending emissions voting process and incentive distribution to LYF lending pools.

During this period, emissions will accumulate rather than being distributed each epoch.

2. Deploy emissions through future campaigns

Once market conditions improve, the accumulated emissions can be used for targeted campaigns or special incentive programs.

A larger, more concentrated incentive campaign is more likely to attract liquidity and participation than small weekly distributions.

3. Maintain transparency

To keep everything transparent, we will publish updates every epoch showing:

• Emissions generated during that epoch
• The total amount of emissions accumulated so far

This ensures the community can track the emissions at any time.

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Summary

Instead of distributing small amounts of emissions every epoch, this proposal suggests temporarily pausing LYF lending emissions and accumulating them for future campaigns.

This approach allows Extrafi to deploy incentives more strategically while maintaining full transparency for the community.