Proposal ID
HsaS3o5n47Fa3W6EgNx8QBZDLikZvcnDYyogTb5TpNX7
What do we propose:
We propose to introduce 3-6-12 month liquidity locks and change the distribution of VIRES rewards in favor of users who support the long term sustainability of the protocol.
-
∙ The longer lock would mean the larger share of the daily rewards(+25% daily for the 6 months lock, +50% daily for the 12 months lock);
-
∙ The total amount distibuted is not affected in order not to dilute the existing VIRES tokens;
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∙ The distribution is proportional to total borrow for each market.
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Here’s how it will change the distribution across all markets and actions:
| | Borrow | Regular Supply | Locked Supply |
| ------------:| ---------------:| ----------------:| ---------------:|
| Before impl. | 125 VIRES daily | 125 VIRES daily | - |
| After impl. | - | 25 VIRES daily | 225 VIRES daily |
Why is this important?
We’ve seen with the UST/Luna situation the catastrophic problems a bank run situation can have on a stablecoin and lending protocol, but despite a relatively similar situation occurring on with USDN/Waves the differences in mechanisms and fast actions of the community meant we avoided the same fate.
However we need to prevent further bank run situations. We believe there are many community members who want to support the long term sustainability of Vires, so this is behavior the protocol needs to incentivise and reward. However there are also many users that want to leave and we want to give them that opportunity to do so, in a way that is sustainable - that doesn’t cause critical liquidity problems.
This solution means users are rewarded a larger share of the VIRES token rewards based on the amount of time they lock their positions. It will also contribute to creating predictable withdrawal dynamics as users will demonstrate their long term confidence (or not) in the platform with the amount of time they lock up their positions. If the majority of users lock up their positions, the minority that want to exit the protocol will be able to do so without causing large scale liquidity exit issues.
Example
∙ For example, for a total of $10 million position locked for 3 months:
∙ They receive 225 (VIRES) *90(days) *62(Vires price) = $1,255,500;
∙ That is an extra 60% APR on top of the existing APY returns on USDT/C.
Limitations
- ∙ There’s no need to export LP tokens to lock;
- ∙ There’s no import limitations after the lock period is over;
- ∙ It’s always possible to add more assets;
- ∙ There’re a minimum amount of LP tokens to be locked: 100 LPs for USDT/USDN/USDC/EURN, 10 for WAVES, 0.01 for BTC and 0.1 for ETH.
Transaction Payload
{
"type": 12,
"version": 2,
"data": [
{
"key": "3P8G747fnB1DTQ4d5uD114vjAaeezCW4FaM_depositToBorrowRatio",
"type": "integer",
"value": 1000
},
{
"key": "3PA7QMFyHMtHeP66SUQnwCgwKQHKpCyXWwd_depositToBorrowRatio",
"type": "integer",
"value": 1000
},
{
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"type": "integer",
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},
{
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"type": "integer",
"value": 1000
},
{
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"type": "integer",
"value": 1000
},
{
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"type": "integer",
"value": 1000
},
{
"key": "3PPdeWwrzaxqgr6BuReoF3sWfxW8SYv743D_depositToBorrowRatio",
"type": "integer",
"value": 1000
},
{
"key": "main",
"type": "string",
"value": "3PAZv9tgK1PX7dKR7b4kchq5qdpUS3G5sYT|3PJ6iR5X1PT2rZcNmbqByKuh7k8mtj5wVGw|3P3NVrhiyHBc4oUWNhtZRnJA5uLX9n39TK9"
},
{
"key": "total_speed",
"type": "integer",
"value": 1736111
},
{
"key": "lp_lock_total_speed",
"type": "integer",
"value": 15625000
},
{
"key": "lp_locker",
"type": "string",
"value": "3PFraDBNUFry9mgcfMo3hGcr3dm43TuYmN6"
},
{
"key": "lock_weight_factor_131400",
"type": "integer",
"value": 1000
},
{
"key": "lock_weight_factor_262800",
"type": "integer",
"value": 1250
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{
"key": "lock_weight_factor_525600",
"type": "integer",
"value": 1500
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{
"key": "lock_min_amount_FkUy7vaeXj7vDm8hDuPoctVdZnVk2JhcpBe5XUVtD91",
"type": "integer",
"value": 1000000000
},
{
"key": "lock_min_amount_D3r6Qmxm9rGTwJhcaubWxwCifb6CBn1CZKf3TM1SfSUE",
"type": "integer",
"value": 10000000000
},
{
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},
{
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"value": 10000000000
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{
"key": "lock_min_amount_5M9sKnq7evAcztZEeWBNJoGsW3Xeygnv1DjCqzBLtPQZ",
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{
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"type": "integer",
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{
"key": "lock_min_amount_EYQXHPaxr8oWD3xnaGFGUGqEM4UcoJut8Knf1Uwta56Z",
"type": "integer",
"value": 10000000
}
],
"senderPublicKey": "3gQ8QUfoGQW6YVuhUv3zuqsbmxbV5F2FAuDXJqVKD6C9",
"fee": 50000000,
"feeAssetId": "WAVES",
"timestamp": 1653387464650
}