Liquidity and Incentive Distribution: Revised

Governance Proposals
1

To start, we are incredibly thankful for all of the detailed input, feedback, and suggestions. It’s great to see the Flux community taking an active hand in the future for Flux. I want to outline a revised plan which in our opinion does the following:

  • continues to reward early Uniswap LPs
  • supports liquidity on new Layer Ones to expand our developer base and community
  • provides rewards for early users on new Layer Ones that would like exposure to the Flux ecosystem

The first revision is to split the proposal into two sections as they target different goals and have separate impacts.

Liquidity Distribution: Provide liquidity to Trisolaris and Ref Finance

  • Ref Finance: ~592,598 FLX / $500k USDC
  • Trisolaris: ~592,598 FLX / $500k USDC

(exact FLX amount TBD based on the current market price at the time of pool deployment)

Goal: Expand to NEAR Protocol and Aurora to help bootstrap our early community on each network.

Liquidity Incentives: Provide rewards to LPs on Uniswap, Trisolaris, and Ref Finance

On January 9th, 2022, we are shifting the rewards across the applicable AMMs as follows:

Total Monthly FLX Distribution - 1,250,000

  • Uniswap: 80% - 1,000,000 FLX - ( effective APY 298% )
  • Ref Finance: 10% - 125,000 FLX - ( APY TBD based on pool size )
  • Trisolaris: 10% - 125,000 FLX - ( APY TBD based on pool size )

In addition to FLX incentives, Trisolaris and REF Finance will provide liquidity incentives as a double reward for liquidity participants, likely pushing APY for REF and TRI into the same range of earnings as Uniswap, with a lower allocation.

Goal: Continue to reward early and loyal Uniswap LPs with an adequate distribution while incentivizing broader liquidity across new layer ones to continue broadening our community base

Thank you again for all of the feedback that we have received! We believe this plan actively mirrors all sentiment from our early community while continuing to expand Flux cross-chain to early use cases.

5 Likes
2

Thanks for the effort Peter, this seems somewhat more appropriate to me.
I hope it works to attract more team members, more investment and more people interested in FLX.

2 Likes
3

I still don’t think reduce reward is a good choice now, I can’t understand why more people against reduce reward than other but you still keep this proposal. Anyway, 10% is not a good number for people who want to stake. Team should find another way to handle this I think

5

I think you’re over-simplifying: The liquidity emission rate is staying constant, just some staking rewards are being diverted towards Liquidity Providers on Ref Finance (Near Protocol) and TriSolaris dex (Aurora EVM).

Some likely outcomes of expanding to new ecosystems: increase number of token holders, cross-project promotion (the two chosen dexes will be matching rewards), include smaller token holders in the LP incentives. This is on top of decreasing Impermanent Loss risks for LP’s.

Not investment advice but one strategy could be to claim any rewards and allocate them towards these dexes to earn an even higher APY due to the dual token liquidity mining incentives :wink:

6

This is great! Thanks for listening and brining another option. I am very pro this as everybody should be. uniswap barely changes while you guys forget expanding to other platforms will only allow more buyers → higher prices. Great choice!

7

Sounds better. As far as I’ve seen, this proposal already got approved, right? (I’ve noticed reward reduction for uniswap LPs)

1 Like
8

yeah, it still fail if they open a new voting. So they decided to apply it directly

9

Thanks for the message here. The effective APY on both Ref and Trisolaris will be above 150-250% APY, which will provide a large incentive to users of both dexes, while maintaining a high APY on Uniswap. I think you may have misunderstood that 10% is referring to the percentage of rewards, not the effective end APY.

10

Hi Peter, i made a tri-flx pair on trisolaris but its not yet incentivised. Any idea when this wil go up on the boards. Agree that bringing flx to trisolaris will strengthen the near ecosystem btw

12

Wait for Wednesday for farming rewards on Ref/Trisolaris :eyes:

1 Like
13

Noice, thanx for the headsup

14

Hi there!

Not sure, that my suggestion will be suitable as a new proposal. So I decided to post here my idea.
Long-term LP providers will get some additional rewards, i.e.: 1) *x coefficient to incentive depending on his staking period (3/6/9/12 months), 2) additional reward tokens, which will be locked until a certain date (v2 release or N months after announcement); 3) special entries/discounts for being validator or smth else.