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Ruler ProtocolRuler Protocolby0x8E04968FB8159783F93CdfB3bB97AA9b90e2c72C0x8E04…c72C

Increase Pool 2 rewards

Voting ended over 4 years agoSucceeded

Liquidity is an important component of any DeFi platform. RULER's vitality depends on liquidity providers in Pool 2 (RULER-WETH on SushiSwap).

Providing liquidity comes with considerable risk, namely "impermanent loss", which is experienced as one half of the pair experiences disproportionate loss of value compared to the other half. Recently, we have seen the price of RULER fall over 75% even as ETH has nearly doubled.

Simply put, participating in Pool 2 is not incentivised enough. We have seen millions of dollars of liquidity lost in the past four weeks. On 16 April 2021, the liquidity was over $13M. Today, just one month later, the pair liquidity is barely over $5M. Low liquidity continues to lead to dramatic price fluctuations as RULER's market depth falls (a $56,000 trade will cause the price to fluctuate 2%).

Pool 2 rewards are currently 3000 RULER/week. This proposal would increase those rewards by 25% to 3750 RULER/week. The emissions shall be lowered back to 3000 RULER/week should the trading price of RULER stay above 200 USD for one calendar week.

APPROVE: Increase Pool 2 rewards to 3750 RULER/week, effective immediately. Rewards shall be lowered back down to 3000 RULER/week when the trading price of RULER stays above 200 USD for one calendar week, or if another superseding snapshot proposal is passed by the community.

DISAPPROVE: Make no changes, keep Pool 2 rewards at 3000 RULER/week.

Off-Chain Vote

Approve
2.17K 47.4%
Disapprove
2.41K 52.6%
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Timeline

May 17, 2021Proposal created
May 17, 2021Proposal vote started
May 19, 2021Proposal vote ended
Oct 26, 2023Proposal updated