Context

The liquidity provider fees are charged for all swaps performed on Symbiosis liquidity pools: Octopools. This mechanism is a part of the AMM pool protocol: the fees taken during trades are added to the total liquidity of the pools. When a liquidity provider withdraws their assets from the pool, they also receive a proportional share of all fees collected since the liquidity was first added.

In the early days of the Symbiosis protocol, the volume of trades going through the protocol was small, and as a result, the sum of accumulated liquidity fees was law. To encourage the liquidity providers Symbiosis introduced the Cross-chain Farming Reward Program, where the additional rewards were in SIS tokens: the Symbiosis DAO token.

Since then, trading volumes have steadily increased, while the SIS token has remained in the shadows. So it's time to boost the utility of the SIS token in general and of the veSIS program in particular.

Proposal

• Discontinue additional rewards in SIS tokens for providing liquidity (so-called Base APR).
• Focus on increasing SIS token awareness within the DeFi community. This includes:

1. Continuing the veSIS reward program: rewarding veSIS holders who have provided liquidity to Octopools (so-called Boosted APR);
2. Lowering the threshold to be eligible for the Boosted APR from 2,500 veSIS tokens to 250 veSIS tokens.

Key Points

• SIS token emission will decrease.
• The proposed changes will increase the visibility of the Symbiosis protocol and its DAO token: SIS token.
• The Symbiosis community will grow up and its members will become more involved in the Symbiosis DAO.