[DCP-26] 🍣 SushiSwap V2 Rewards Extension

Proposal Discussions
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Co-authored by: @vandynathan @SkirmantasJ @dragos

Summary

RADAR has traded within the range of $0.006-$0.01 over the last twelve months and maintained liquidity levels on SushiSwap around $1M. Considering the current market conditions, additional large RADAR holders joining the DAO through DappLaunch, and our ongoing focus on liquidity and on-chain transactions on scaling solutions such as Polygon, this proposal suggests:

  • Maintaining the APR on SushiSwap V2 ETH/RADAR pool, providing 120,889 RADAR per day, totaling 10,879,983 RADAR over three months.
  • Continuously reviewing the feasibility of transitioning from V2 to V3 and/or utilizing protocol-owned liquidity on Ethereum.

Motivation

The proposal aims to balance enhancing RADAR’s liquidity and addressing liquidity incentivization challenges, including impermanent loss risks to Liquidity Providers (LPs). By refining the reward structure on SushiSwap V2, we aim to sustain attractive APRs for LPs, supporting RADAR’s price stability and mitigating inflationary pressures on RADAR. Analyzing the DEX trades, Sushi is still leading in terms of transaction size, therefore, maintaining stable liquidity levels is important for large trades that are not efficient on the other chains.

Abstract

Introduction
A careful redistribution of rewards to ensure sustained support for RADAR’s liquidity on Ethereum without jeopardizing our current liquidity depth and RADAR price. stability. With new large RADAR holders joining the community through DappLaunch and other proposals, this strategic adjustment is timely and essential.

The 3 month period is short enough to allow us to react to the market dynamics, given the recent market movements, but also long enough to not become a governance and management burden.

Optimization of RADAR Liquidity Incentives
Balancing the costs of liquidity with liquidity growth is crucial for our token and product growth. Considering the technical and liquidity fragmentation risks of new pool launches, we propose maintaining our stance on SushiSwap V2 with the current APR rewards.

Future Liquidity Improvements
To further strengthen our Ethereum liquidity, the Tokenomics Workstream will continue to review the feasibility of moving from V2 to V3 and/or utilizing protocol-owned liquidity on Ethereum when market conditions improve and liquidity is consolidated on other L2 chains.

We invite the community for feedback and engagement before the proposal’s execution.

Vote

  • FOR: Maintain the current SushiSwap V2 rewards, supporting RADAR’s strategic liquidity plans.
  • AGAINST: Reject the current to SushiSwap V2 rewards and adjust the reward scheme.
0 voters
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bnb and matic liquidity need working on more than eth… they need balancing.

We obv need more liquidity on eth than on matic and bnb but still bnb is way behind and matic is way below what eth is so we need to sort them out first instead of adding more eth rewards.

So i have voted nope.

Also on top of all this
image
you said this im sure you will also ask for rewards for this… again building the gap bigger ??? the others need more focus and the rewards that ur asking for right now should be used for this + what u was are going to ask for. Migrating ETH to V3 would be a good move as well i think so sooner you do that the better.

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I think that is an overstatement… :smile:

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I think you are oversimplifying the DEX situation and I recommend you to look at the actual data of how those pools are performing and who is providing liquidity. Ethereum is still the only chain that has a CEX onramp/offramp and having good liquidity there is important. On BNB Chain and Polygon, most of the liquidity is owned by the DAO, which is much more flexible and the DAO has control over it.

You need to keep in mind that this is not how incentivization is working. If the rewards are stopped on Sushi, the LPs are going to start getting their liquidity out and getting new liquidity to that pool is going to cost 10x more than maintaining it.

The Sushi pool is still the most powerful and stable one for RADAR and risking the TVL there is going to be a very bad move. The DAO is not owning the liquidity in the Sushi pool, therefore it is going to be risky to stop the rewards, which is not the case with the other chains.

Continuing the rewards is not going to building a bigger gap, but just maintaining the existing liquidity.

Also, there are rewards on-going for the QuickSwap pool through Gamma and Merkle, you can see it here: Merkl

I suspect you do not fully understand the liquidity situation and you are looking at the liquidity pools very superficially. Stopping the rewards there or lowering the rewards too much will lead to a risky situation and might make some LPs to get their liquidity out, which will lead to a disastrous result.

Migrating LPs is VERY difficult, the retention is under 5% when migrating to a new pool, that’s why migrating the V2 to V3 is still not happening.

Comparing Ethereum with BNB Chain and Polygon makes little to no sense, because on Ethereum, the DAO owns none of that liquidity, so it can just disappear in 1 day if all the LPs are deciding to pull out their liquidity (if they feel the incentives are not good enough), while on BNB Chain and Polygon, 90% of the liquidity is owned by the DAO, which means it’s much more stable and can be moved around as the DAO wants.

Rented liquidity (Ethereum) is not the same as owned liquidity (Polygon & BNB Chain). Also, the fact that Ethereum is still the onramp/offramp chain, that is also VERY important for this decision and also the gas fees are driving the size trade on Ethereum to be higher than on the other more affordable chains.

There are plans to start a new Bonding program on QuickSwap to gather more POL on Polygon and then, a portion of the raised liquidity can be bridged to Ethereum to create a new V3 pool with POL and then it could be the time to keep lowering down the Sushi rewards, but that takes time and resources and it is work in progress.

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we had a year of reward extensions on eth the matic rewards from what i heard have/Had run out from a community member who is providing liquidity on polygon but that’s not being mentioned (rewards might of just been renewed for next 29 days) and most the community is staked in polygon or BNB i know lowering or not giving out rewards is risky.
But so is contiusely rewarding 1 chain constantly.
If the DAO owns most the tokens on bnb and polygon then we need to make moves to try and get these tokens some how into liquidity and stop relying so hard on ETH, you are right i do look at liquidity very simple like, and i might not fully understand it but then i sometimes way things go i don’t think the experts do as well so. we need to get past this FEAR of ETH Lp holders running off cuz they aren’t getting there full chicken dinner while rest of the chains starve.

Apeswaps ruined bnb it feels like, cant find barely any info on it i have to legit go to poocoin just too see what state it is in. And they migrated to Apebond leaving the liqudity pools in there old one to some other provider it looked like. i dont know i bet team doesnt as well what went off with that?

So much going off that im not happy about and i called apeswap before they pulled all them tricks.
I called luna Strats which seems to be doing exactly what i said it would…
now im calling liquidity on ETH and im being told i dont understand they might leave? if only thing keeping em holding radar ETH is the Extensions on the rewards i suggest they leave, Cuz at end of day Stakers took a MASSIVE hit to APR/APY in favor of keeping tokenomics stable. and all i seen for a year is massive amounts of cream skimming and a marketing agency being given free reign to own are pro staking. (good things have happened as well but im talking about LP wise here and DAO DCP’s)
LP’rs have sacrificed nothing so far just been rewarded as for the costs of ETH fees they have gone down massively over the past year compared to what they use to be like.

Also who owns most the liquidity on ETH??? >.> if not the DAO, the community??? if so how much of the community? will we see a uproar from them if so maybe then??? but its been a constant and most acted upon DCP’s for a year now. while most other stuff gets thrown to side or worse forgotten about. not this bit never skipped a beat
or forgot about updating this bit. all work gets put into this bit… starting to have me feeling like the teams divided into nice people who wanna see radar succeed and the other half trying to train cattle into a bot farm…and imma start to put peeps in the groups who i think belongs where… cuz i don’t think some of the team have community or projects best interests at heart its just as much as they can grab while its alive. cuz in there mind set everything goes to ZERO. and with that mind set i don’t mind them going now…before we get too big and they get too run off with x150 size of that bag.

I think stopping ETH rewards will make progressing in evolving are tokenomics faster for sure. not that its gonna happen. just like stopping steler strats from pumping the bots on pro wont happen, >.>

And how there KOL’s are gonna some how become pros on what’s going off suddenly in radar and start shilling it like the pros they are. >.>

Imma moan like this in next 3 months and next 3 months after that and next 3 months after that until what is i…let me have a look at token unlocks… till about july 2025 gives stella just enough time to get there Foothold on governance and bots lined up properly cuz they have to manually pro up the bots for now… (properly hardest there gonna work this year)

Then they get to own the contribute to earn program don’t they. and what else u got lined up that some company can just dominate it while claiming u want community u don’t want community want customers maybe this is why you aren’t getting the community.

So if they don’t get a reward extension this time rewards go to zero? if so what’s happing long term? cuz we cant keep that up? eth liquidity destined to be abandoned??? if so we need to think of ideas to keep people wanting to keep providing liquidity beyond rewards. (cuz that is no long term plan)

Also last time token pumped i went to swap some of my radar into bnb and was looking at a 11% price impact hit while being told we are going to work on it what progress has been made to sort this out next time it happens? i think zero progress has been made to sort this out next time i happens in fact i believe it maybe worse if I’m in a position to make a trade like that again when it happens.

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To keep the community updated, the Snapshot of DCP-26 :sushi: SushiSwap V2 Rewards Extension (Re-up), and the team will work to execute as outlined in the Proposal

https://snapshot.org/#/dappradar.eth/proposal/0x8a712158841b1e6d5036767131af610264522bc4c533403f195ac21d8822f9be