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PlanetPlanetby0xbecD4fAE08D4C6E271b709a6551Bf337C6e6060D0xbecD…060D

We should reduce the rate of GAMMA distribution for borrowing AQUA and increase the APY of the AQUA/GAMMA LP

Voting ended about 4 years agoSucceeded

Rebalancing the distribution of GAMMA based on user activity is paramount to the long-term success of AQUA and Planet Finance. Right now we are seeing more shorting of AQUA/GAMMA than buying, causing the price of AQUA and GAMMA to fail. Therefore, market mechanics dictate that we should lower the incentive to borrow and sell AQUA for other assets, and improve the incentive to buy and hold AQUA. As a DAO with AQUA being our form of governance, it was inevitable that this vote would come about based on market mechanics. It is in our own interest as AQUA holders to increase the value of AQUA and GAMMA respectively. Therefore, I propose that rather than halt the borrowing of AQUA and GAMMA altogether, (which would be heavy handed, foolish, and would force our greed upon a free market reducing decentralization and credibility of the protocol,) we simply reduce the rate at which GAMMA is distributed to AQUA borrowers at a rate of 10%APY a day starting at the end of this vote, until AQUA has shown a steady increase of value such that it will be in AQUA holders interest to stop increasing the APY, or it hits 0%. We will use the amount of daily minted GAMMA that is saved to instead incentivize the AQUA/GAMMA liquidity provider pool, bringing back the days of HIGH YIELD FARMING which was the allure for new investors. This will cause the free market to prioritize buying AQUA to pay back borrowed amounts, or if borrowing: to stay in the original borrowed AQUA and provide stability to our system. This will cause a feedback loop, a chain reaction similar to a short squeeze as investors cover their AQUA loans in favor of a higher yield in the AQUA/GAMMA pool, rather than shorting it indefinitely for profit. This vote gives us a unique advantage in the market as AQUA holders as we will be able to see when/if this will start, how long it will take, and can position our portfolios accordingly as we see where the vote goes. Profit by voting 'YES' as holders of AQUA, furthermore solidifying the value and use-case of AQUA as both a governance token, and a yield farming asset, additionally adding value to the protocol and feeding this chain reaction further, while strengthening our community as a whole.

Off-Chain Vote

Yes, let's take AQUA to the Moon
33 100%
No, I'm fine shorting AQUA for $
0 0%
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Timeline

Dec 02, 2021Proposal created
Dec 02, 2021Proposal vote started
Dec 05, 2021Proposal vote ended
Oct 26, 2023Proposal updated