Proposal: Increase Sweet Vaults APY by increasing emissions

Proposal: Increase Sweet Vaults APY by increasing emissions

Why are we proposing to increase emissions?

Higher token emissions mean higher APYs. All vaults would increase APYs, and sweet vaults would become more attractive to stakers, therefore receiving more deposits, resulting in more PACOCA buybacks and fees to the BNB vault.

This increase in emissions would go along with a marketing campaign of the high APYs provided by the boosted sweet vaults.

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What is the possible downside?

Increasing the emission could also increase the current token inflation. However, keep in mind that this has become more sustainable for us because Pacoca buybacks have reached over half a million a month. Additionally, to prevent inflation, burn mechanisms are implemented:

• There is a 3% buyback and burn fee in the “Convert small balances” feature;
• PACOCA-BNB (ApeSwap and CafeSwap) have a 5% buyback and burn fee;

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➡️ Option 1: Keep emissions at 9 PACOCA per block

PACOCA Pool: 314% APY PACOCA-BNB (ApeSwap): 461% APY CAKE Pool: 122% APY

➡️ Option 2: Increase emissions to 12 PACOCA per block

PACOCA Pool: 564% APY PACOCA-BNB (ApeSwap): 779% APY CAKE Pool: 164% APY

➡️ Option 3: Increase emissions to 14 PACOCA per block

PACOCA Pool: 809% APY PACOCA-BNB (ApeSwap): 1090% APY CAKE Pool: 202% APY

* All APYs are estimates