On-Chain Proposal 1: Increase PNG Pool Rewards

Code for our first proposal is complete! Now we just need 1 million PNG of support. I’ve posted the details on snapshot here: Snapshot.

Vote your support for the proposal and if you really want to help out, delegate your PNG to me: 0x808cE8deC9E10beD8d0892aCEEf9F1B8ec2F52Bd. Make sure to read the instructions How Governance Works.

Once I gather 1 million PNG of support, I’ll launch this on-chain.

15 Likes

10x seems high, no? Won’t that drain all liquidity from AVAX pools (other than AVAX-PNG)? Keep in mind people can stake AVAX and receive 10% rewards outside of Pangolin, so there needs to be significant incentives to keep that liquidity.

I’d prefer starting with more like 2x and bumping up from there if it doesn’t achieve the desired effect.

thanks connor for leading the very needed change. I have voted for it since the code for our Proposal for amending the yield farming mechanics is not ready yet and urgent action is required to increase PNG pool rewards. However, I think there are still ideas that can be implemented there such as having a more balanced split of Avax and PNG pool rewards (1/10 might be excessive) and automation of pool weight calculation, linking it to various parameters such as IL and tx volume. Also the time spent in the pools can be taken into account when distributing the LP rewards within the pool. Also I very much like the PNG LP lottery idea. cheers

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After overwhelming snapshot support, proposal #1 is live on-chain!

https://app.pangolin.exchange/#/vote/1

I do have one update. After reading through all the community feedback, many people were concerned about 10x incentives being too high, so I decided to reduce the initial PNG weight to 3x. These weights are still changeable in future proposals. Thanks you so much to everyone who delegated to me for making this proposal possible!

If you’d like to vote, make sure to have you PNG in your wallet and delegated by 18:22 EDT 4/8 (tomorrow!).

2 Likes

Why don’t the community decide x of PNG Pools?

Nice work by the way :clap:

When delegation time you wrote your sugestion i make png pool reward x10 and then you take our votes then change your mind i think it is not true

2 Likes

I believe almost all the positive votes you received were from before you changed 10x fo 3x. Best thing to do would be to do a voting between the 2 options. I think it is more democratic that way.

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You’re welcome to undelegate, you still have half a day to do so. I just thought these updates were urgently needed and wanted to get them as soon as possible. Feel free to submit a new proposal going back to 10x after if this one passes. It will be simple to do.

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How long is the proposal live before it’s enacted?

thank you for your answer I read talkings in the forum you are right

Bad proposal. Voting against.

Would you like to elaborate? Is the multiplier not right to you or is it that you think liquidity is gonna go away? PancakeSwap seems to have plenty with a crazy multiplicator for BNB/CAKE, so I wonder why you think it’s bad. It’s not like Pangolin is popping off right now…

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Pancakeswap uses a completely different multiplier. The way the PNG multiplier is implemented, it will suck up ALL rewards and leave Pangolin a dex with only PNG pairs. The people who created this proposal need a crash course in tokenomics, or maybe they are from a competing dex and try to sabotage Pangolin.

Can you elaborate on how PancakeSwap works compared to Pangolin and what you think needs to be done? I see a lot of complaining without facts or solutions…

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The pancakeswap multiplier doesn’t scale with more deposits. It’s a fixed amount per pool albeit 40x larger for Cake/BNB than for pools with only a 1x multiplier. So the more Cake/BNB is deposited, the lower the rewards per deposited Cake becomes, but that’s only for the Cake/BNB pool and it doesn’t affect other pools.

The way Proposal 1 is constructed, the more the PNG pools grow, or the more PNG price grows, the lower the rewards becomes for pools like AVAX/ETH. Growth of PNG pools will suck rewards from other pools at a rate of 3X, which is huge. I did a few calculations and my guess is that PNG rewards for non-PNG pools will drop by something like 8-10x, but could even go to a 20x drop. And that is with the 3x multiplier, NOT the 10x. Such a large drop makes it barely profitable and almost certainly worse than simply staking as a delegator.

And what’s even worse, even if people withdraw from say the AVAX/ETH pool it doesn’t increase the rewards for the remaining staked AVAX/ETH. So the pools will just empty more and more, which makes it unattractive to swap due to slippage, and on and on. Basically, the Pangolin dex will die except for the PNG pairs.

Proposal 1 is a way forward. It adds functions to the contract that’ll help us. 3X is just the initial multiplicator and I don’t think it’s bad since it gives a reason to hold PNG. This in turn reduces sell pressure, increasing the price and potentially the APY%. This higher APY + the sentiment that governance is at work should also bring liquidity to the platform. More bridges & CEX listing (when C-chain will be able to connect to CEX) will increase Pangolin’s visibility and liquidity too.

If we want to increase rewards based on the liquidity in the pool, we can all work together on a Proposal #2 ASAP.

I agree that more work is needed to make the tokenomics perfect, but that’s why Governance exists. I don’t think this proposal will hurt Pangolin if we keep improving the project. I would really like to know what the Ava Labs team thinks of this. @dasconnor @hariseldon2

Cheers

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Proposal 1 is terrible. Liquidity will only increase in the PNG pools, the other pools will dry up. There really is no point in a DEX that only trades its own token. There is no value added to a circular money flow with continuous (network fee) losses. When people realize that, they will start to panic sell their PNG and the whole thing will come crashing down.

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is my understanding that LPs do so to accrue fees on swaps, PNG rewards are just an extra, nobody should provide liquidity just to farm a worthless token.

Swap fees could theoretically be enough but in reality it’s not worth it. Swap fees pay between 5 and 15% depending on the pool. Simply staking for proof-of-stake pays 8-12%.