BIP 1: Badger Emissions for Week 2

BIP | Badger Improvement Proposals
1

Category: Emissions
Scope: Week 2 Emissions Voting
Status: Accepted

Overview

With week 1 Badger emissions coming to an end tomorrow December 10th at 1pm EST, we need to decide if the emissions should change for week 2. Leading up to launch the community decided to evenly divide the 4,830,000 $BADGER allocated for liquidity mining (23% of total supply) across 8 weeks. The intention was to re-evaluate weekly and for the community to decide if there should be a change.

My proposal is to keep emissions the same as week 1 but add a 30% boost on day 1 compared to the other 6 days.

Details

Week 1 emissions were as follows;

Total $BADGER 603,750

Setts

  • renbtcCRV — 85,937 $BADGER
  • sbtcCRV — 85,937 $BADGER
  • tbtcCRV — 85,937 $BADGER
  • Badger — 110,000 $BADGER
  • Badger <>wBTC Uniswap LP — 150,000 $BADGER

Super Sett

  • Harvest renbtc CRV —85,937 $BADGER

We currently see the total value locked and users participating in our setts product increasing everyday. We also have very attractive APY’s in compared to other BTC yield solutions on the market which ensures those deposited stick around and new value is attracted.

This is critical for Badger in the early stages. We need to prove we have a product users can trust and attractive returns.

For that reason I believe we maintain the same emissions as week 1.

I also think a boost on the 1st day is a great way to get additional users and TVL to deposit into the system. It further increases our APY’s while having little effect on emissions expenditure.

As an example from below on renbtcCRV LP Sett. Without boost it’s 12,276.7143/day vs 11,662.8786/day which at current price of $7.54, there is a $4628.32 difference in total daily distribution for this vault.

I propose for week 2 emissions;

Total $BADGER 603,750

Setts

  • renbtcCRV — 85,937 $BADGER = 15,959.7286 day 1 and days 2-7 11,662.8786/day
  • sbtcCRV — 85,937 $BADGER = 15,959.7286 day 1 and days 2-7 11,662.8786/day
  • tbtcCRV — 85,937 $BADGER = 15,959.7286 day 1 and days 2-7 11,662.8786/day
  • Badger — 110,000 $BADGER = 20,428.5714 day 1 and days 2-7 14,928.5714/day
  • Badger <>wBTC Uniswap LP — 150,000 $BADGER = = 27,857.1428 day 1 and days 2-7 20,357.1429/day

Super Sett

  • Harvest renbtc CRV —85,937 $BADGER = 15,959.7286 day 1 and days 2-7 11,662.8786/day

Implementation

If you are in support of this proposal to add a 30% boost day 1 and maintain the emission schedule vote “Yes”; if you don’t want to include a boost, vote “No.”

All voting will end by 11am EST December 10th to give the operations team enough time to implement for week 2.

  • Yes
  • No

0 voters

26 Likes
2

Week 3: drop 10% from each of the setts and add it to uniswap lp

Week 4: if uniswap doesn’t fix vampire bot routing, move to sushiswap

Week 5: Happy Badger Year!

7 Likes
3

I find it very plausible Congratulations to BADGER :heart:

1 Like
4

I’d propose taking a look at honeyswap.

8 Likes
5

Yes…sure …cheers :beers:

1 Like
6

Definitely agree with this above point. I’m in favor of keeping the emissions schedule as we discussed leading up to the launch of Sett and adding the 30% boost for Day 1. A temporary boost early on further solidifies that Badger truly appreciates its earliest contributors and participants while also creating buzz for potential community members + participants to take notice - all while making a minimal impact on the rest of the week’s daily emissions.

6 Likes
7

I support 100%. Excited to join the new forum!

1 Like
8

Our Liquidity Mining Event has been successful as we planned it prior to launch. Hence, I support BIP-1, to keep the emission as it is. Also, 30% for Day 1 week 2 emission provides stickiness to BadgerDAO’s early badger community movers. We will soon reevaluate again this emission going forward. Voted 'Yes" for BIP-1! :badger:

1 Like
9

I support the BIP-1:

  • probably not all airdropped tokens were claimed and late ppl also will have a chance to participate in genesis emission
  • second week is also important to maintain the APY as MEME event appears and this will be most active week I guess

Voted “Yes”

3 Likes
10

Voted… YES :badger: :badger:

11

Let’s go… BIP-1: YES!

12

Id support moving to Sushiswap ASAP given their support and ability to move quickly.

1 Like
13

I totally agree. I think it makes sense

14

I agree with keeping the status quo and an interesting idea for the first-day boost. It will definitely attract some additional buzz and TVL; however, I’m somewhat concerned the surge will also drive up APY and TVL with the APY “crashing” down below week one levels after day one unless Badger prices rise and is sustained with the surge. If the APY is too low then there might be some exit from the setts which I hope is minimal. I still voted yes but wary of the potential outcome.

2 Likes
15

There is such a risk, but I think that the possibility to see significant exits - even if the APY goes down - is a slim one, as at the moment there may be other projects with APY higher than ours, but non of them is as popular, reliable and strong as our, with such a great community. So lets go as planned.

1 Like
16

Suggestions for week 3:

We should consider lowering the amount of badger we emit to LP’s. Badger is a new protocol, and our AUM is low. As huge amounts of liquidity go into a pool, it becomes less volitile and Whales can make bigger trades without slippage. Our current 150k badger in LP rewards allocations seems to currently support liqiduity of just under $7 million US.

The price of badger is quite stable, and whales can make pretty big trades without a lot of slippage. Meanwhile coingecko reports our market cap at about 5 million and our 24 hour volume at about 13.5.
Why are we spending so much on excess liquidity right now when we could be doing other things?

Badger is supposed to be a governance token, earned by community members for participating in and learning about the protocol. The typical LP APY crowd seems to be more about trying to chase/maintain the highest APY’s on the charts in order to catch in on the newest fad.
I would propose that many of our LP’s will be gone once there is some new, more exciting and juicy APY to chase/liquidity to provide. Conversely those who invest in the pools, the community, the development, the conversation, the governance, etc are far more likely to stick around.

Maybe we should try cutting the emissions to both the badger and the badger uni pools down to 85,937 to match the other pools. I’d spend the rest of that on finding community with things like more NFT contests, developer grants, airdrops for RenBTC ninjas who lost out because their way of interacting with the platform was too advance, and whatever else we can come up with. Where the rewards should go I don’t know, but I our LP’s seem to be demanding more and more rewards, while our liquidity needs are well exceed. Why not try to incentive that money to experiment with the platform in other ways?

1 Like
18

First of all congratz with the opening of the Badger forum. I’ll support this proposal 100%. :sunglasses:

1 Like
19

Although a higher APY may attract more BTC to enter the market. However, from the current volume, the APY of funds that only deposit BTC seems to be a bit high, because they basically do not take any risk. In contrast, the risk of LP’s free loss is similar to the stake income, and I feel that some weight is assigned to wbtc<>badger LP reward pool is better.

2 Likes
20

Once uniswap v3 launch sushiswap will be rekt + almost nobody uses sushi

1 Like
21

can you explain what does Day 1 mean? the first 24 hours a person stakes they get more?

1 Like