Go Back BACK Add a Gauge for SpiritSwap’s Lending Network

Description: Currently, SpiritSwap’s gauge system allocates SPIRIT to LP Token Pairs (e.g. SPIRIT-FTM LP), thus offering additional incentives to liquidity providers. We propose to add a gauge that allocates SPIRIT incentives to SpiritSwap’s Lending Network. The SPIRIT allocated to the Lending Network via the gauge would first be locked into a new winSPIRIT fork called olaSPIRIT, maintained by Ola Finance. This means that Ola will be removing the allocated SPIRIT from circulation and locking it into inSPIRIT forever. This olaSPIRIT would then be used to fund the Rainmaker Program: A smart contract that distributes tokens to borrowers and lenders. The Rainmaker’s distribution rules are highly customizable, as there is a distribution speed per money market on both the lending and borrowing side (E.g. 0.22 SPIRIT per block to suppliers of SPIRIT, 0.007 SPIRIT per block to borrowers of USDC).

Just like pairs in the DEX, the Lending Network is a revenue-generating machine. While most of the interest that borrowers pay goes to the liquidity providers (lenders), a portion of it is set aside as a protocol fee. Up until now, this protocol fee was split 50/50 between SpiritSwap and Ola Finance. This split provided Ola Finance the resources required to successfully maintain and improve the lending network.

Full proposal can be read via commonwealth proposals section, Link below. It is recommended users read the full proposal prior to voting. You have 7 days to vote, so if you have any queries, you can question these with the Ola team directly within the proposal forum.

Link to original proposal: https://commonwealth.im/spiritswap/discussion/3316-add-a-gauge-for-spiritswaps-lending-network