LIP-009: Allocate 8% of Spirit revenue towards the linSpirit Single Staking

Proposal :

• To allocate 8% (which amounts to 2% of xLQDR APR) of the revenue currently generated by the Spirit pools towards the linSpirit Single Staking pool until the launch of Spirit V2.
• To let the Liquid Driver Development Team have the flexibility to modify afterwards the % rate of the Spirit revenue allocated.
• To let the Liquid Driver Development Team have the flexibility to decide the duration of this allocation.

Rational / Justification :

• Increase the APR of the linSpirit Single Staking pool (expected to double).
• Allows us to ramp up linSPIRIT acquisition prior to the launch of Shadow Farms

Benefits :

• LiquidDriver accumulates more voting power. Hence more voting power for xLQDR holders once the on-chain vote infrastructure is rolled out which is tied to permissionless bribing.
• This will allow LiquidDriver to increase its acquisition of inSPIRIT and as a result provide the best yields on SpiritSwap farms through fully boosted deposits and allow Shadow Farms to be the home of the highest yields on all SpiritSwap farms, thus activating a flywheel effect : More revenue will be captured by Shadow Farms which in turn xLQDR holders - through the performance fees benefit. More voting power will be gained therefore more bribes captured.

Risks :

• Reduction of xLQDR holders APR by 2% (as 8% is taken from the SpiritSwap emissions).
• $SPIRIT is currently trading at a historically low price. The release of SpiritSwap V2 might not lead to a positive price action effect on the $SPIRIT token.

Risk mitigants :

• Coordination of the release of the Shadow Farms with the release of SpiritSwap V2 :
• The high APR of the Shadow farms and the new features of SpiritSwap V2 shall drive additional liquidity towards SpiritSwap;
• The utility of inSpirit shall increase involving a buying pressure on $SPIRIT.
• The APR reduction is expected to double the linSPIRIT single staking pool and as a result the more inSPIRIT captured the higher the boost we can provide for the SpiritSwap LP depositors.

Before making any final decision feel free to discuss the proposal in the general chanel section of our discord http://discord.gg/LiquidDriver