SPS Governance Proposal - Stop Paying DEC:DAI LP Incentives

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DAO Sponsored Proposal 3

This proposal is part of an ongoing effort to rework and adjust our LP incentives to ensure that we're creating value for the SPS DAO and our token. There are pools that some feel are being significantly overpaid for the value that they provide to our community. If a proposal does not pass, nothing will change until if/when a new proposal is made and passed. Please provide feedback during the preproposal phase as it relates to this particular pool's proposal.

If this proposal passes, the SPS DAO will reroute all inflation currently being paid (200,000 SPS per month) for the DEC:DAI pool to the SPS DAO's wallet on the Binance Smart Chain. The purpose of rerouting the inflation instead of stopping it entirely is to have the tokens available for the SPS DAO to use as it sees fit in the future, such as for opening or incentivizing new LPs if the SPS DAO elects to do so.

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9 comments
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Could this cause the DEC available on the Ethereum chain/Uniswap to dry up? Could it potentially limit exposure to people in the US to DEC? I'm personally a lot more familiar with ETH and Uniswap than I am with PancakeSwap/Sushi/BNB, it seems odd to potentially dry up onramps during the current bull market.

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This pool has been the worst cost to value ratio for as long as it has existed. It's the one that people are always wanting gone. I wouldn't be too worried about it drying up an onramp as it really isn't used much. You can deposit ETH to hive-engine with no deposit fee and buy DEC without the gas fee and move it into game for free as well.

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(Edited)

Cool, thanks Clay. I didn't want to potentially limit people buying in, and obviously Uniswap is more well known and trusted than Hive-Engine... but the no fees on HE does sound much better.

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Well to be clear, the pool will still technically exist. We just wouldn't be printing SPS to pay for it. We could have a vote to deploy DAO assets into the pool if people really want the liquidity there, but yea it's literally the worst value pool we have. People just don't use it much.

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Oh yeah, I totally realise that. I have just no idea how much liquidity would disappear from that pool if this goes through... but by the sounds of it there's way more in the pool than it really useful at this point.

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Let's just cut it down a bit and do not remove it. 50 or maybe 60% less would be a big chunk less. And also gives some to the DAO for the long term.

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This is what I consider to be the best course of action. I am even open to cut rewards by 90% for pools such as DEC:DAI.

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Fully support this one. ETH fees are brutal, and anyone tech savvy enough to be holding ETH is likely knowledgable to defer to L2s or BSC to save on DeX fees. Good riddance to this one!

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