2021-08-22 - This proposal has reached the polling stage
Hey guys, we are quickly approaching 10 million CFG rewarded on Tinlake which means we are nearing the end of the current rewards allocation. According to the last council proposal, 2 million CFG were minted towards Tinlake liquidity rewards to increase the total allocation from 8 million CFG to 10 million CFG. Currently, 9,850,115 CFG have been rewarded, which means we will hit 10 million CFG rewarded in about a week at the current rate of 1 CFG per 1000 DAI per day.
I am proposing to mint and allocate an additional 1 million CFG towards Tinlake liquidity rewards and reduce LP & AO rewards by 20%.
At the current Tinlake TVL, an allocation of 1 million CFG would provide Tinlake liquidity rewards for an additional 6-8 weeks, therefore giving a reasonable amount of time to reassess Tinlake liquidity parameters in case of market fluctuations. CFG price has appreciated since listing and the current APR for Tinlake liquidity providers is about 45-50%, this is about 50% higher than what the APR was during the previous liquidity parameter update. I believe with these changes Tinlake can continue to maintain a competitive yield while keeping CFG within its intended supply growth as TVL increases.
Would appreciate any of your comments or opinions! I will put up a forum poll after the community has some time for discussion of this proposal