SIP-21: Discontinue SI rewards for LPs in the Siren AMM pools


Discontinue SI rewards for liquidity providers in the Siren AMM pools, effective Monday, January 3nd, 2022.

SIREN Protocol Lyonesse has functioned as a working prototype. Due to the risk associated with providing capital to a young project, Siren has boosted the yield for LPs in the Siren AMM pools by giving out additional rewards in the native Siren token, SI.

Now that Siren’s next release is exiting development and proceeding to audit, the existing program should be discontinued in favor of well-designed tokenomics that provide incentive for long-term protocol growth. Siren tokenomics, including staking and long-term, sustainable rewards distribution will be up for SIP proposal in Q1 of 2022.

In addition to the tokenomics changes, the new release will allow for an expansion of our wholesale options purchasing program, which has been in its pilot phase for the past month. QCP, the largest cryptocurrency options market maker, has been participating in this wholesale program by buying options from the WETH Calls pool. Their demand provides a more stable baseline yield for Siren LPs, in addition to the trading fees that also accrue to LPs. The new Siren release will enable expansion of the program to other pools and assets.

The current reward rate of 8K per day represents an emission of 2.92MM SI per year, nearly 10% of the SI tokens allocated for network growth. Now that we are in transition, this rate of emission is no longer required.

the snapshot voting for SIP-21 is now live:
voting continues through Sunday