*** Basic Summary/Abstract ***
Currently, our APR rate (61.94%) is not competitive with other projects. To incentive yam investors to create a larger pool, we need to put more yam BoU to our farm. Based on my research, 150% or over will be a good rate to keep us with the industry.
*** Motivation ***
Make Yam Community Consensus United Again!
*** Risks ***
There is no risk.
*** Specifications ***
- Let’s do a calculation based on the pool size, keep yam’s incentive rate to APR 150% for uniswap and sushiswap pool.
- Repeat #1 on every Monday.
Let’s Keep Yam Farming Competitive
I don’t think this is necessary right now. If the scaling factor was a lot lower, I’d say yes. But the higher this floats, the higher the probability that it will retrace. I also don’t think 150% will be sufficient to move a significant amount of liquidity. I don’t think double the current rewards will get close to doubling the liquidity.
APR is going to be less dependent on the amount of YAM we incentivize with, and more dependent on the minimum % people are willing to accept before entering the farming pool. As we’ve seen, people are more than content farming for ~60% APR. Adding more YAM issuance will come with more YAM selling, and likely wouldn’t increase the APR as more people would just join the pool.
I don’t see a reason to compete on the APR. The only reason I see to increase the issuance for farming is if we don’t think we have enough liquidity, which I don’t think is the case