QIP 013: Using the Deposit fee revenue to farm rewards

Summary:

How can we use the idle LP Tokens earned as protocol revenue to better incentivize Qi stakers, reduce Qi emissions, and improve the health of the protocol.

As of week 11 the protocol has earned around $1,836,864 value in QuickSwap LP tokens (MAI-QI and MAI-USDC) through the farm deposit fees (0.5%). These LP tokens are owned by Qi holders and are currently sitting in the treasury.

Treasuries current QuickSwap LP token holdings:

Treasury multisig: 0x3feacf904b152b1880bde8bf04ac9eb636fee4d8

What could we do with the holdings?

We have the opportunity to utilize those LP tokens to farm Qi in the [mai.finance)[https://mai.finance) pools and redistribute those rewards back to Qi stakers. Deposit fee revenue is averaging just under $175,000 per week. As we earn more deposit fees we would continue to redeposit those into the pools to maximize returns.

Current farm statistics

Our current farming rewards are scheduled to end on November 1st. During the time between now and then we could use 100% of the Deposit fee revenue to farm Qi. The Qi received through farming rewards would be distributed to Qi stakers (100%) and the rest held by the treasury for future use. After Nov. 1st the community can decide what will happen with the deposit fee LP tokens.

Possible returns (all estimates based on current values):

Using tokens as is: MAI-QI rewards: 12,806.16 Qi/week MAI-USDC rewards: 7,101.63 Qi/week Total rewards: 19,907.79 Qi/week

All in MAI-QI: Total rewards: 79,394.10 Qi/week This would entail selling around 800,000 USDC from the MAI-USDC LPs received and buying Qi

All in MAI-USDC: Total Rewards: 8,043 Qi/week This would entail selling around 130,000 QI from the MAI-QI LPs received and buying USDC

Voting Options:

• Option 1: Farm using LP token revenue (As Received)
• Option 2: Farm using LP token revenue (All MAI-Qi)
• Option 3: Farm using LP token revenue (All MAI-USDC)
• Option 4: Do not Farm using LP token revenue (Reject)