Category: Emissions
Scope: Week 4 Emissions Voting
Status: Accepted
Overview
With week 3 Badger emissions coming to an end tomorrow December 24th at 1pm EST, we need to decide if the emissions should change for week 4.
Details
In week 3 we planned on launching 2 additional vaults and allocated 90,000 $BADGER in emissions which didn’t happen. So it was somewhat of an unplanned emissions cut. This along with $BADGER token price decrease the last 7 days has given us good data points around what emissions are needed for each vault to maintain certain TVL.
I propose we increase emissions to 623,750 $BADGER for this week to ensure vaults are competitive and there is room to incentivize additional vaults. The extra 20k $BADGER over weeks 1 & 2 doesn’t change much since we reduced last weeks by 90,000.
A data point that jumped out at me was around the UNI LP vault. There was a decrease of 30%+ in liquidity while Bitcoin price start to move upwards quickly. This suggests that users wanted to remove IL exposure and capture BTC upside by exiting the vault. Those same folks deposited their Badger into the Badger only vault. This vault is only a few hundred % difference in APY while removing IL risk.
I think we should increase the difference in emissions between LP vaults vs (Badger only) to allow for higher LP APY to make up for additional risk.
Also, I think we maintain the same CRV vault emissions as last week since most are now in the 40-50% APY range while ensuring the wbtc/eth SLP vault is in line with those as well. I can see that vault attracted more TVL then the individual CRV vaults so we need to ensure APY is attractive still when the pool size is larger.
Finally, this should be the last week of $BADGER only emissions which when $DIGG is released will allow us to reduce $BADGER emissions while maintaining APY’s on a schedule to extend LM.
Week 3 emissions were as follows;
Total $BADGER 513,750
Setts
- renbtcCRV — 83,437.5 $BADGER
- sbtcCRV — 83,437.5 $BADGER
- tbtcCRV — 83,437.5 $BADGER
- Badger — 70,000 $BADGER
- (NEW) wBTC/ETH Sushiswap LP — 0 $BADGER
- Badger <>wBTC Uniswap LP — 110,000 $BADGER
- (NEW) Badger <>wBTC Sushiswap LP— 0 $BADGER
Super Sett
- Harvest renbtc CRV —83,437.5 $BADGER
I propose for week 4 emissions;
Total $BADGER 623,750
Setts
- renbtcCRV — 83,437.5 $BADGER
- sbtcCRV — 83,437.5 $BADGER
- tbtcCRV — 83,437.5 $BADGER
- Badger — 50,000 $BADGER
- (NEW) wBTC/ETH Sushiswap LP — 80,000 $BADGER
- Badger <>wBTC Uniswap LP — 90,000 $BADGER
- (NEW) Badger <>wBTC Sushiswap LP— 70,000 $BADGER
Super Sett
- Harvest renbtc CRV —83,437.5 $BADGER
Implementation
If you are in support of this proposal vote “Yes”; if you don’t support this proposal vote “No.”
All voting will end by 11am EST December 24th to give the operations team enough time to implement for week 4.
- For
- Against
0 voters