PNG Sidecar to PGL Deposits

Proposal: Rework the rewards to either require or provide additional incentive for depositing PNG alongside PGL deposits.

Example:
Say currently 1 PGL deposit earns 1 PNG/wk. New rewards would either
a) require 1 PGL + 1 PNG to earn 1 PNG/wk
b) allow 1 PGL to continue earning 1 PNG/wk, and 1 PGL + 1 PNG earns 2 PNG/wk.
(the actual numbers will obviously take some effort to determine)

Reasoning:

  • Provides a way to support PNG value while also still only providing rewards for contributions to liquidity (critical difference with a separate individual staking mechanism and an important one). Providing liquidity is the essence of the platform and there shouldn’t be any mechanism to earn rewards on Pangolin without doing that IMO.
  • People are more likely to be comfortable holding PNG than they will be pairing it against other tokens (for people that wouldn’t be attracted to extra incentive to PNG pairs only).
  • This is a fair reward system that doesn’t scale with the size of your PNG holdings. ie, 1 PGL + 1 PGN also has the same yield regardless of the size of your portfolio.
  • PNG actually has true value and is now less likely for rewards to be dumped

Implications:

  • This could make the platform more competitive for the users that aren’t interested in pairing AVAX and PNG.
  • Could be a way to extend the number of pools that receive rewards while still requiring buy-in to the platform
  • Since PNG is tied up with liquidity it is unlikely to see sharp price swings (causing less market reactivity)
  • Incentivizes more liquidity
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