Phase 4 (III) Rewards Adjustments

Lower USDC/FLOAT rewards

It is proposed to decrease the BANK rewards for the existing USDC/FLOAT pool (0x7ee092fd479185dd741e3e6994f255bb3624f765) to 20 BANK per week. Note that, the US dollar value of these emissions are ~$17,400, compared to ~$20,000 when the emissions first started.

Motivation

There is accumulating evidence that the USDC/FLOAT pool might be the cause of the lack of auctions that the protocol has been experiencing lately. Namely, the arbitrage trades between the pools USDC/FLOAT on Uniswap and FLOAT/ETH on Sushi are bringing back FLOAT to its target price before an Auction is able to be triggered. And since Auctions are and should remain the primary instrument for FLOAT to reach its target price, we’ve decided to proceed with lowering the incentives of the USDC/FLOAT pool. The desired effect is lowering the available liquidity to a level that will make it much harder for FLOAT to be at target price without auctions, while at the same time high enough to be used as a TWAP for future integrations.

The Vote

Vote Yes, to lower USDC/FLOAT rewards to 20 BANK per week Vote No, to do nothing.