[AIP-4] Redirect All Emissions on the alUSD Staking Pool to the 3CRV Pool: Page 2

[AIP-4] Redirect All Emissions on the alUSD Staking Pool to the 3CRV Pool

stuntnuts

I’m in favor of a systematic decrease of rewards over 6 weeks. One thing I find in the crypto-farming space is that decisions are taken too quickly giving the impression that these systems are haphazard and cannot be relied on for responsible money allocation. Given the recent exposure of this project on outlets like Delphi Digital and the other podcast, many people will be currently doing research to learn about the platform and its opportunities. To just quickly change the farming pools overnight would give many would-be investors pause and make them reconsider the seriousness of the project. By releasing a 6 week plan to decrease the rewards and phase out the pool, it gives a stronger impression that this is a level-headed and maturing community.

anon3469

scoopy Happy to get your feedback on this. Yes it makes sense. Although I'm staking ALCX I'd rather lower the APY to prevent farm and dump and incentivize the 3crv pool instead.

seanmc-eth

scoopy I support scoopy's proposal and would even be in favor of cutting the ALCX only pool rewards even further (possibly even to 10% and splitting the cut amount 50/50 to go to the SLP and CRV pools?). I think that funneling as much liquidity to the LP pools as possible is ultimately what is best for the protocol and is the best way to incentivize long term investment.

Chop

Adding my Discord thoughts here too for a more structured approach:

AIP4 is def interesting and I'm all for @scoopy's allocation of cutting it down to 1%, or 0.5% if necessary - disclaimer: I'm large in the 3CRV pool myself.

I don't see too much impact going on there when that's done, as both the alUSD & 3CRV pool seem to be mirroring each other in terms of APY since the start (a bit off at the very start due to minting cap). Aside from external factors, I'd expect the same to happen when that re-alloc is made, with a part of alUSD moving to the 3CRV pool and a part staying, balancing out APY again.

Money locked in alUSD doesn't really provide any utility to the Alchemix Ecosystem afaik, aside from being a bit more noob-friendly which is arguable as acquiring that alUSD isn't noob friendly to begin with as it's only reasonably paired on Curve, which is as scary as it gets for new-to-DeFi people to use given its' terrible interface.

An additional thought I had overnight and I'm unsure if that fits the discussions around AIP-4, is to remove total rewards from alUSD (or 0.0000000001%), and instead add an additional pair with the same allocation for DAI/alUSD Sushi-LP.

That way we'd provide actual value to the ecosystem by:

Bootstrap liquidity on a more normie-facing exchange in preparation for higher utility of alUSD
Liquidity Integration on popular aggregators (1inch, Matcha, etc)
Recognition of stable-volume from data aggregators (i.e. Coingecko)
Additional hidden yield for SLP stakers coming from trading fees without much IL risk due to deep 3CRV pair guaranteeing peg through arb

Reeserj

Would it be possible to build a "migrate alUSD staking" button that would migrate staked alUSD to the newly incentivized pools/LP Positions

magicianEX

I do not agree that alUSD pool rewards have to be reduced as staking alUSD directly benefits the community as EIB mentioned. We do not want a situation where people aren't holding on to alUSD and later have to bump up the alUSD rewards again. Not forgetting the 3CRV is predominantly made of up larger whales, any adjustment to reduce alUSD is a self fulfilling prophecy only decided by the whales and existing majority in that pool. Minorities have little say.

The current AIP updates are constantly about reward changes and makes the project appear amateurish. LPs are constantly having to adjust their allocation and waste ETH on high gas. Improvements on protocol innovation, security, partnerships would be more important to prioritize as the space is moving very fast. My proposal:

61% SLP
20.5% 3CRV
14.5% ALCX
2% alUSD

ButlerAndTheThirdStringers

UPDATE:
A lot of healthy conversation centered around this proposal has taken place in the Alchemix Discord over the past couple of days. For posterity, here's an overview on how that conversation has played out and the current status of this proposal. For more details, feel free to navigate to the governance-proposals channel in the Alchemix discord and read the full conversation.

Due to a number of conflicting viewpoints as to what the new farm weights should be, including whether or not they should even be changed, we set up a poll (which is still pinned in the governance-proposals channel) containing 6 options community members could indicate their support for. The intention of this poll was to gauge community sentiment and narrow our options down to 2 or 3 before holding a snapshot vote at a future time. As of the date of this post, the results of the poll is as follows:

A - Keep the weights the same as they are now
ETH-ALCX sushi pool : 60%
ALCX-only staking : 20%
3CRV-alUSD pool : 18%
alUSD pool : 2%
Votes For This Option: 30

B - Reduce alUSD weight to .5% to boost crv, leave everything else as is
ETH-ALCX sushi pool : 60%
ALCX-only staking : 20%
3CRV-alUSD pool : 19.5%
alUSD pool : .5%
Votes For This Option: 10

C - Reduce alUSD weight to basically 0% to boost crv, leaving everything else as is
ETH-ALCX sushi pool : 60%
ALCX-only staking : 20%
3CRV-alUSD pool : 19.9999%
alUSD pool : .0001%
Votes For This Option: 5

D - Reduce alUSD weight to .5% to boost crv, while also reducing ALCX-only by 1%
ETH-ALCX sushi pool : 60%
ALCX-only staking : 19%
3CRV-alUSD pool : 20.5%
alUSD pool : .5%
Votes For This Option: 20

E - Reduce alUSD weight to basically 0 to boost crv, while also reducing ALCX-only by 1%
ETH-ALCX sushi pool : 60%
ALCX-only staking : 19%
3CRV-alUSD pool : 20.9999%
alUSD pool : .0001%
Votes For This Option: 10

F - Reduce alUSD weight to basically 0 to boost crv, while reducing ALCX-only and SLP by a combined 1%
ETH-ALCX sushi pool : 59.5%
ALCX-only staking : 19.5%
3CRV-alUSD pool : 20.9999%
alUSD pool : .0001%
Votes For This Option: 1

In the days following this poll, some community members expressed a desire to replace the alUSD staking pool entirely with an alUSD-ETH staking pool, which would be useful in creating another market for alUSD prior to any potential future DeFi integrations. This suggestion seemed to garner a great deal of support from a large portion of the community (including @scoopy), however there were questions as to whether or not the current emissions allocated towards the alUSD staking pool would be enough to incentivize providing liquidity to a potential alUSD-ETH LP. As things currently stand, @scoopy is exploring options involving integration with other DeFi protocols in hopes of potentially providing additional incentives to this potential pool. Once we have an update from him we will likely revisit this discussion. Until that time, talks pertaining to changing farming weights have been temporarily postponed.

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