[PROP # 15][APPROVED] AMM Incentives # 3

Dymocracy
1

AMM incentives # 3

Proposal

This proposal is for the automated streaming of DYM tokens to liquidity providers of specified liquidity pools. This proposal sets out to release 160,000 DYM from the incentive manager with tokens distributed linearly over one month from the passing of this proposal. This amount is a reduction of 90k DYM from the previous incentive plan.

This is set to be released upon the completion of the current incentive distribution (AMM Incentives #2). Included in this proposal is the first RollApp deployed on Dymension (NIM network).

Context

The primary goal of this incentive proposal is to reduce DYM allocations, maintain competitive yields, and include the first RollApp.

Liquidity pool data (end of April):

Screen Shot 2024-04-29 at 8.35.47 PM
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Proposed distribution

Pool ID Base Asset Quote Asset Total DYM Rewards Change from Previous Month Expected DYM Yield
002 DYM USDC 50,000 -20,000 45.7%
005 DYM USDT 30,000 -20,000 48.6%
003 DYM TIA 30,000 -10,000 35.25%
004 DYM ATOM 25,000 -15,000 34.38%
012 DYM NIM 10,000 N/A N/A
006 DYM stTIA 5,000 -15,000 13.75%
009 DYM ETH 5,000 -5,000 41%
007 DYM milkTIA 2,500 -7,500 17.25%
008 DYM WBTC 2,500 -7,500 22.75%

** Please note Pool ID automatically created Gauge ID # 31. This is due to additional gauges created for existing liquidity pools.

Governance votes

The voting period for this proposal as set on genesis is 5 days beginning from the time of deposit. The following items summarize the voting options and what it means for this proposal:

  • YES
  • NO
  • NO WITH VETO - A ‘NoWithVeto’ vote indicates a proposal either (1) is deemed to be spam, i.e., irrelevant to Dymension, (2) disproportionately infringes on minority interests, or (3) violates or encourages violation of the rules of engagement as currently set out by Dymension governance. If the number of ‘NoWithVeto’ votes is greater than a third of total votes, the proposal is rejected and the deposits are burned.
  • ABSTAIN - You wish to contribute to quorum but you formally decline to vote either for or against the proposal.
23 Likes
2

I think these numbers make sense as we have bootstrapped good chunk of liquidity up until now with very lucrative DYM rewards in past few months. Also, its good to see DYM rewards allocated to NIM pool. Hopefully, we will also see NIM external rewards soon after the pool is live :slight_smile:

10 Likes
3

Lucky will vote YES once launch

6 Likes
4

looks nice… vote for yes.

5 Likes
5

You got my vote. It’s nice being rewarded for being loyal to the DYM community.

4 Likes
6

What I understand is that the % of incentives for everyone will drop.
Is it possible to explain more broadly the release of 160K and the reduction of -90K for incentives?
And how does performance become more competitive if you eliminate or reduce incentives?

I still believe that people do not read the proposals, since they are more limited and with less explanation.

I understand that you want to reduce DYM allocations.
How does it become interesting over time if the returns are increasingly lower?

thank you.

6 Likes
7

Hi team Dymension ! Why start time 1970’s ?
“startTime”:

dateThu, Jan 1, 1970, 01:00 AM

“distrEpochIdentifier”:

string"minute"

“numEpochsPaidOver”:

int43813

}

5 Likes
8

With no state_time timestamp inputted the incentives are released at the passage of the proposal. Since there is no timestamp it defaults to the beginning of UNIX time.

5 Likes
9

Hey, what about adding USDT/USDC pool to the AMM incentives for the next time ?

2 Likes
10

hey @MrMouihbi why do you think that’s needed?

You can trade USDC to USDT , plenty of liquidity just uses DYM as a middleware.

i.e USDC > DYM > USDT.

3 Likes
11

@Yishay I know, I just think by adding a USDT/USDC would bring more liquidity as there isn’t any stable lp pool atm … ltf people including me provide liquidity in stable pairs and would be happy to bring it on DYM

4 Likes