Reward system update, PNG pairs and massive whales

What was supposed to happen, happened… The whale continued to dump on us :).
Anyway, maybe time to launch a Booster on for people who were in PNG pairs already (aka : avoid the whale to jump ship) and decrease dramatically all the pools where this whale is?
Then if he wants to dump, it will be done, and we can only recover from here.
Regarding PNG utility, guys don’t fud. It is the beginning. As always, it takes time for projects and different approaches to build. There is volume, there is liquidity : it can only go well from here :slight_smile:

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my 40K usd AVAX-Png pair is now only 20K left

I sometimes think myself act like a idiot, take more risk but same or even less reward

hope that reward system can be updated… :sneezing_face:

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Check the photo above. Whale is in all pools. Almost sharing half of it…

in favor of this…tx. Glad to see it.

Since the very beginning, I am a supporter and liquidity provider in Pangolin.

Daily Sam dump is not a problem since the guy provides liquidity. And can do whatever he wants with the reward he collects.

But…

On the last day of airdrop, more than 5m PNG tokens were claimed (maybe by the same person/group).

And there are still at least 4.8m PNG tokens untouched, or let’s say waiting for another dump like what happened on 20/March.

Let me drop some addresses.
759k 0x9F41cECc435101045Ea9F41D4EE8C5353F77e5D5
669k 0x662d905a1795fFdf8cfaB0abe670dBff3A9FD247
606k 0xbac8f2448239F371eB793B83B82945bfaC741Ae0
438k 0x5c72ab1005bE6452C0417Cc0B0C4D549fB7aE6E1
348k 0x33EAD8E168c54a3e3bAb3cf109F69E906351DB35
348k 0x7E88Dc82B0A9EE4DC04Abf88c7C449804DF3F375

What’s the point in letting them to rip off AVAX/PNG pool?

2 Likes

Agreed, in hindsight it seems pointless. But hindsight is 20/20 and the devs couldn’t have anticipated the immediate success of the dex or the high initial price of PNG.

Nothing to be done about it now.

%100 percent thinking the same. My comment on the situation is:

Devs did not anticipated anything and they can not do anything because … there is a governance waited. Because they strictly obey the white paper and we are the fools who knew everything up front and WE should have anticipated which devs “could not” anticipated and we should not have joined the pangolin before the governance because everything was open. And all these in hand we need to wait until the early governance is accepted and a vote is made and it is put in action. Until then please do not leave PNG pools and feed the whales. This is a critic for Pangolin team who decided for the economics.

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Prop up PNG pool rewards asap in order to stop that dumping - it’s a very easy solution and should be implemented immediately.

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Umarım birileri görür çünkü her geçen gün PNG hodlladığıma pişman oluyorum sesiizce izleyen bi yönetimi hiç yakıştıramıyorum!

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PROPOSAL FOR AMENDING THE YIELD FARMING MECHANICS

THE PROBLEM

Under the current reward system, the Liquidity Providers (LP’s) in AVAX pools get exact same rewards as in PNG Pools for each AVAX equivalent amount they provide. This creates a risk reward imbalance in favour of AVAX pools since AVAX is considered a more secure investment with its

  • larger market cap
  • lesser inflation
  • lower risk of impermanent loss due to bigger liquidity pools.

As a result, most of the PNG rewards goes to AVAX LP’s, who then dump those to buy more AVAX. The sell pressure on the PNG causes in decreased yield for all the LP’s including those in AVAX pools and limits the growth of liquidity pools.

THE CHALLENGE

PNG price must be supported by creating incentives to buy and hold on to PNG.

THE SOLUTION

INCREASING THE REWARDS FOR PNG POOLS

While incentivizing AVAX liquidity is important for attracting LP’s to Pangolin, the majority of the PNG rewards should support PNG pools and go to PNG LP’s who are more likely to hold on to their tokens to increase their liquidity instead of dumping them.

I propose to split the daily 175k PNG rewards to two fixed buckets regardless of the total liquidity in them:

  • PNG Pools: 100k/day
  • AVAX Pools: 75k/day

I believe this is better than having a reward ratio for each AVAX equivalent liquidity between AVAX and PNG Pools since if PNG price starts to fall, so will their rewards.

Sparing 100k PNG rewards only for PNG pools will positively effect the PNG value and result in increased liquidity in PNG Pools.

SPLITTING EACH BUCKET INTO SUB GROUPS FOE EACH PAIR

Once the buckets for PNG and AVAX pools are decided, the reward for each pair in the respective bucket should be determined everyday.

Currently it is based purely on the amount of liquidity in that pool. However, the pairs with more tx volume require a bigger liquidity pool.

I propose to take the transaction volume also into account when determining the rewards for each liquidity pool.

The liquidity weight should be 60% and the tx volume weight should be 40%.

Below is a numeric example:

Liquidity (PLG) - 60% tx volume (mUSD) -40% Overall bucket weight Daily PNG reward
A B C =
0.6 x A/∑A + 0.4 x B/ ∑B
PNG ETH 1000 2 16% 15,909
PNG BTC 2000 3 26% 26,364
PNG AVAX 5000 6 58% 57,727
TOTAL 8000 11 100% 100,000

Specific note on AVAX PNG Pools: I suggest it gets rewards from both PNG and AVAX buckets.

VALUING THE TIME SPENT IN THE POOLS
Incentivizing LP’s to stay in the liquidity pools as long as possible is also key for securing enough liquidity and preventing PNG dumps. Hence the reward factor should be increased by for each day spent in the liquidity pool.

Below is a numeric example for further clarity:

Lets assume that PNG-ETH Pool distributes 100PNG per day.

There are 3 LP’s in this pool who have provided 1000 PNG over last 100 days.

Each day spent in the pool is valued with an additional 0.02% reward factor.

In this scenario, the reward per LP is follows:

PNG liquidity provided Duration in LP pools Reward factor Total Reward Factor Reward weight PNG Reward
A B C = (1+0.2% x B) D = A x C E = D / Total D E x PNG reward bucket
LP1 200 100 days 1+0.2%*100=1.200 240 22.92% 22.9226361
LP2 300 10 days 1+0.2%*10=1.020 306 29.23% 29.22636103
LP3 500 1 day 1+0.2%*1=1.002 501 47.85% 47.85100287
TOTAL 1000 1047 100.00% 100

Everytime an LP adds liquidity a new row will be added in the table as it would have a different time stamp. When withdrawing the liquidity, the last injected amount should go out first, or in other words first in last out (FILO)

It is also important to have a cap on the reward factor to balance the effect. I propose to cap it at 1.5 which can be reached in 25 days.

ON PNG STAKING

I have also come accross several proposals to introduce PNG staking as in AVAX staking, however I do NOT support that idea.

Despite staking is very important for POS systems like AVAX in order to approve txs, it does not have much use for DEX operations. Pangolin’s interest lies in incentivizing liquidity pools not in staking. On the contrary, if there is too much incentive in staking, Pangolin cannot work due to lack of liqidity. Therefore, saving some of the 175k PNG to stakers and reducing the LP rewards should be avoided.

15 Likes

This is brilliant. I also noticed pangolin has not own it’s gems. Yield farming can cause not only for liquidity in addition to this, it can make appetite for new users for trading. Why any one come here for swaping coins which already available in other exchanges. Less fees? Ok, but no liquidity. People flowed into uniswap for 100x gains, not for dex or technology enthusiasm.

Here is a way to reward consistent PGL providers, it doesn’t solve any whale issues, but it can be used with other methods suggested here easily.

Take a look at the proposal and make comments :smiley:

5 Likes

It feels like PNG pools should always have double rewards compared to non-png pools but that pools in general should be flexible.

Projects that draw liquidity should get PNG nothing else. So probably the top 20 pools by liquidity should then get the PNG and this should update weekly.

I absolutely agree with you

[image] :boom:

I agree with this 100%, Look at Pancakeswap with it’s token CAKE. They have a 100% APY on solo staking and their ecosystem and token price is growing at a rapid pace.

It’s been 1 month from this brilliant idea comes out. And supported with many replies. But there is no change. Is this exchange is really community driven? Am I missing something?

You can start voting now

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

3 Likes

Vote AGAINST. This is egregious. You are harming the liquidity of this DEX just to pump your token. This change will turn Pangolin into another incestuous yield farming ponzi. People need to actually be able to trade for this DEX to grow.

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The main liquidity providers don’t have PNG but will vote with their feet.

the update is meant to adjust risk/reward ratio which is completely fucked up, your comment makes no sense at all