SIP-6 Liquidity Mining Emission Proposal for Next ERC-20 Pairing

Proposals
#1

Simple Summary

In order to incentivize usage of the network and increase TVL, a rewards program is proposed to incentivize liquidity providers to provide funds to the network, for the next ERC-20 pair to be added to SIREN. The candidates to be added are:

  • SUSHI/USDC
  • UNI/USDC
  • YFI/USDC
  • LINK/USDC

Abstract

The recommendation is that 1,000,000 Si tokens be placed into a staking contract as a reward to liquidity providers during a fixed time window of 90 days for both the ERC-20 to be added, along with it’s corresponding USDC pool, beginning on February 22nd and ending on May 23rd.

Rewards will be distributed every 24 hours based on respective pool shares, with no caps on liquidity.

Motivation

Currently there is no reward to drive liquidity to the platform when new pairs are added. Major defi platforms such as Uniswap and Synthetix provide rewards to incentivize usage of the platform, this drives liquidity into those platforms. In order to be competitive in the defi market, a grant program using the Synthetix staking and distribution contracts would help drive liquidity to the Siren markets pools.

Please vote and discuss below to evaluate the parameters.

SIP-6 Approval Poll
  • Yes
  • No

0 voters

2 Likes
SIP-7: $SI Token Distribution Event
#2

Sounds good to me except I think the rewards should be calculated every 24 hours, not distributed every 24 hours. The rewards should be distributed shortly after the rewards program ends, between 1 and 7 days, according to some linear vesting schedule over, say, 6 months.

Otherwise sounds good to me. My vote is for SUSHI.

#3

multi-collateral siren plz. take mah unis ser

#4

4 above pair is awesome, they represent DeFi on wide adoption. I propose YFLink also since they have strong community

#5

I’d love to further suggest AAVE as a potential ERC20 pair

1 Like
#6

Where is ETH pair? That should bring huge liquidity.

#7

Is there anyway to get an understanding of how much liquidity there may be in advance?

#8

I like the idea of more incentivized pools that give some type of “multiplier” for people who stay in a pool longer.

For example the share of the pool stays a relative value but is now calculated by (your relative ownership x multiplier value)/(avg multiplier value)

Something like a linearly increasing multiplier on a daily basis from that stops increasing after 8 weeks could make sense.

Maybe the multiplier can start at 1x and max out at 3x after 8 weeks

1 Like
#9

I definitely like the spirit of this amendment–participants holding in the pool should receive higher rewards! However, the calculation for rewards could get complicated fast, and people who are in the pool longer already earn more, because they get rewarded for more days.

SIP-8 LPP Extension and Vesting Schedule
#10

Sounds good. I suggest the rewards should be linearly vested for 3 - 6 months to ensure participants stay long term.

SIP-8 LPP Extension and Vesting Schedule
#11

Fair. Other protocols are doing multipliers as well with success.

BADGER, for instance, does this pretty well, and without too much complication. On a per-day basis, it’s nice to see longer holders get rewarded more than short term holders.