On behalf of SOV stakers, this proposal is intended to re-prioritize our incentivization of Sovryn’s liquidity pools with conservation in mind, and prepare for prioritization of future pools while minimizing SOV emissions where possible.
Sovryn has been expending 420,000 SOV per month on the following liquidity pools:
RBTC/SOV - 30,000 SOV/week, 120,000 SOV/month
RBTC/XUSD - 15,000 SOV/week, 60,000 SOV/month
RBTC/MYNT - 15,000 SOV/week, 60,000 SOV/month
RBTC/ETHs - 15,000 SOV/week, 60,000 SOV/month
RBTC/BNBs - 15,000 SOV/week, 60,000 SOV/month
Lending Pool: XUSD - 15,000 SOV/week, 60,000 SOV/month
I propose the removal of SOV rewards from the RBTC/ETHs and RBTC/BNBs pools for the following reasons:
- ETHs & BNBs are not assets that are of high utility within the Sovryn DeFi suite, and are not aligned with Sovryn’s mission to build a world on top of Bitcoin.
- We must prioritize pools that support assets among project tokens or assets that add utility to our system and ETHs + BNBs have no utilization or strategic alignment with Sovryn.
By removing rewards for these two pools, we are saving 120,000 SOV per month and reducing the emissions rate of LP rewards by 28.5%. We can better use these tokens for future pools on our platform, such as the Zero Stability Pool.
With the SOV stakers’ support, we must focus further on conservation of SOV emissions as we roll out more products that bring value accrual to $SOV as well as Sovryn’s users.
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