We’re nearing the end of the first RAD 1M in rewards paid out through the Tinlake Liquidity Reward program. As a first stage in the reward program, we allocated an initial 0.23% of the fully diluted token supply to rewards. This has proven to be very successful growing our Total Value Locked (TVL) to DAI 3.5M with over 100 investors participating.
As we are nearing the end of the RAD 1M budget (it’s in less than 17 days at the current rate) the community needs to decide how to proceed with the rewards.
Parameters to discuss
Allocation for the next stage
With the initial success of the first stage of the Radial Rewards program, we propose to apply the parameter for the second stage to the next One Million in Radial Tokens the protocol awards. With the increase in liquidity and therefore rewards this number should be adequate for a period of at least one month.
A concern when launching the program was that short term variability of the liquidity in the system could be seen challenging for asset originators to plan with. For that reason we initially set the minimum time required to be invested in a pool to be a minimum of 60 days. AOs experience has however shown that the protocol could already start allowing of claiming rewards after a minimum of 30 days has been reached.
I would propose to lower the minimum period to 30 days.
The most important topic is the reward rate, how much Radial the protocol awards per DAI invested. The formula to date was very simple and has worked well:
For each DAI invested for a period of 24hrs the protocol awards 0.0042 RAD. This means the longer investors provide liquidity or the more liquidity they provide the more they are rewarded.
Given how successful the Radial Rewards program has been to incentivize TVL in Tinlake, I propose to keep the reward rate the same.
Please share your opinion and participate by voting on your preferred options
- 0.5M RAD
- 1M RAD
- 2M RAD
- more than 60 days
- 60 days
- 30 days
- less than 30 days
- Stay the same (0.0042 RAD/DAI)
- Increase the reward rate
- Decrease the reward rate