As part of Centrifuge Governance stakeholders periodically reviews the reward parameters for Tinlake Liquidity Providers and Asset Originators. We last discussed these here. After the protocol paying 1M CFG we have to decide how we want to adjust the parameters for the next cycle. At the current rate of rewards we will hit the 1M in awards in about two weeks…
In the last vote, and second stage in the reward program, we collectively decided to allocate 0.42% of the fully diluted token supply to rewards. The rewards were paid out in approximately 45 days.
Since that decision we have made some really big milestones. Our Total Value Locked (TVL) has gone from DAI 3.5M to DAI 6.85M and the number of investors participating has grown from 100 to over 150 investors.
The community needs to decide how to proceed with the rewards taking a few key considerations into account.
Parameters to discuss
Allocation for the next stage
With the initial success of the second stage of the Rewards program, we propose to apply the parameter for the third cycle (the next one million in Centrifuge Tokens (CFG) rewards).
With the increase in TVL and taking into account our future growth, we should aim to set parameters for the at least 30 days. Historically the protocol TVL doubled month over month.
Our current award rate is 28,536 CFG/day. Allowing 100% growth of TVL we would arrive at 60’000 CFG/day in 30 days or 1.35M CFG for that period or over 60 days or 3.6M CFG which should be enough for 60 days.
- Allocate 1.35M CFG (approx 30 days)
- Allocate 3.6M CFG (approx 60 days)
- Different allocation (please comment)
We previously made the decision to lower the minimum period to 30 days as the experience of AOs showed that the protocol could start allowing the claiming of rewards after a minimum of 30 days has been reached.
We’ve had very few large short term deposits and quick withdrawals that could have proved difficult for the pools to absorb.Thus, as this hasn’t been a problem we believe it’s safe to leave the vesting at 30 days.
- Keep it the same
- Make it shorter
- Make it longer
Again, the most important topic is the reward rate, how much CFG the protocol awards per DAI invested. The formula to date was very simple and has worked well.
Last time, we decided that for each DAI invested for a period of 24hrs the protocol awards 0.0042 CFG (previously RAD). This was based on the hypothesis that the longer investors provide liquidity or the more liquidity they provide the more they are rewarded. We’re keen to hear your thoughts: how has this been for you? Please comment below.
Given how successful the CFG Rewards program has been to incentivize TVL in Tinlake, I propose to keep the reward rate the same.
- No, do not change the rate
- Yes, further discussion on the rates needed
Please share your opinion and questions below and indicate your preferences in the poll to make the decision