Proposal to shutdown the SPIRIT-sinSPIRIT Gauge

Background

Gauge — Is a system that has been created to complement the macro tokenomics of the SpiritSwap ecosystem. This system enables participants in the ecosystem to influence where the yield farm rewards should be directed each week. The system works by allowing inSPIRIT holders to cast votes on which farms should receive sufficient support through reward emissions, and emissions are sent out to farms according to the votes that they receive.

At SpiritSwap, 40% of the emissions are designated for the variable AMM (vAMM), while 25% are allocated for the stable AMM (sAMM). The inSPIRIT holders are responsible for determining how to distribute 65% of the emissions through their votes. The remaining 35% of the emissions are assigned to the isolated gauge proxy.

Isolated Gauge Proxy — SpiritSwap has dedicated 35% of its emissions to the isolated gauge proxy, which divides the emissions as follows:

ㆍ20% of emissions for the SPIRIT - FTM pool ㆍ10% of emissions for the USDC - FTM pool ㆍ5% of emissions for the winSPIRIT pools

The emission levels for those pools are pre-determined and set by the admin gauge. Therefore, the emissions allocated to those pools are not subject to inSPIRIT holder voting, as they are fixed and cannot be changed.

Here is an example of a liquidity provider depositing an LP token into a gauge and therefore receiving emissions for it:

The Proposal

The winSPIRIT pools receive 5% of the emissions each week, and this amount is distributed equally among 5 pairs, which are SPIRIT-linSPIRIT, SPIRIT-rainSPIRIT, SPIRIT-binSPIRIT, SPIRIT-tinSPIRIT, and SPIRIT-sinSPIRIT. Each of these pairs receives 1% of the total emissions allocated to the winSPIRIT pools.

Among the 5 pools, the creators of sinSPIRIT have ceased development on their primary protocol, Scarab Finance, and transferred control to another group. They have struggled to maintain a peg over 5%, and currently, they are unable to vote on any of the pools. This is because they have been unable to connect their inSPIRIT contract to SpiritSwap's V2. From below, you can see their peg situation compared to the other winSPIRIT projects.

In addition to the discontinuation of sinSPIRIT's development, the SPIRIT-sinSPIRIT pool has not generated any volume or fees on SpiritSwap V2. The 24-hour volume has sometimes dropped as low as zero. For this reason, we suggest to the DAO that the SPIRIT-sinSPIRIT gauge should be terminated, and the emissions that would have been allocated to that gauge should be distributed equally among four other winSPIRIT pairs.

Terminating a gauge that does not contribute to SpiritSwap in terms of volume, fees, or liquidity, and is not being actively developed, would enable SpiritSwap to distribute emissions to its winSPIRIT pools more efficiently. It would also eliminate the incentive for a pair that does not contribute to SpiritSwap. This would result in a more effective distribution of emissions among pairs that generate more value for the platform.

Actions:

Approve = Terminate the SPIRIT-sinSPIRIT gauge. Do nothing = Decline the proposal.