Proposal
- Allocate $30k worth of ALCX to two new PancakeSwap pools, alETH-ETH and alETH-ALCX.
- Acknowledge and accept the current changed allocation of emissions and the temporary emissions framework.
Context
ALCX emissions have not had an official change in allocation for the last 9 months. During that time, there have been a number of changes in the Alchemix protocol. Given these changes, this proposal seeks to account for all governance changes and multisig adjustments as well as start a trial with PancakeSwap. It also proposes an allocation framework for the multisig until veALCX launches. The sections below go through each specific topic.
Also, please note, that in previous AIPs, emissions were set by governance based on a total percentage going to each location. However, some of the agreements and mechanics of certain pools made it necessary to maintain a constant amount of rewards, which meant that these gauges are making up an increasingly higher percentage of total emissions as time passes, because of the constantly falling ALCX emissions. The most notable of these is the Curve pools, for which the weekly bribes are constant. This is beneficial to the protocol, as the value returned from bribes is approximately equal to or greater than the value put in due to the Elixir AMOs. For more information about the rate of emission change, refer to https://alchemix-stats.com and select the “ALCX emissions” tab.
As a result, we are specifying some gauges in terms of percentage and others in terms of a constant amount of ALCX.
PancakeSwap
The possibility of setting up alAsset pools on PancakeSwap and receiving co-incentives from them is what prompted this proposal. Given that we are doing well regarding alUSD liquidity mainly because of the FRAX Base Pool pairing, when discussing incentivizing liquidity pools with the PancakeSwap team, we proposed solely alETH pools to be set up in PancakeSwap.
For alETH liquidity on Mainnet, we currently have no partners with whom we co-incentivize pools, so this would be the first such step in that direction.
PancakeSwap launched on Ethereum Mainnet, and they agreed that they would provide initial marketing for our pools.
The proposal calls for two pools to be set up, an alETH-ETH and and ALCX-alETH pool, for a trial period of two months, committing $30k worth of ALCX tokens for the pools combined, heavily weighted towards the alETH-ETH pool.
Should the trial be successful, the multisig would seek to make the change permanent, and would decide at that point if emissions to the alETH Curve pool should be reduced by an equal amount, or if the additional emissions from the trial are needed to maintain desirable liquidity levels.
Fantom
A lot has changed on Fantom since the initial launch. SpiritSwap bribes had become detrimental to use, as we were paying more in ALCX bribes than the dollar value of emissions that were going to the pools were worth. For this reason, emissions to SpiritSwap were stopped completely.
Given that interest in Alchemix has not really picked up on Fantom, the amount of overall emissions going to the chain proved to be too high. As such, emissions going both to SpookySwap for gALCX liquidity, as well as to Beethoven X for alUSD liquidity, were reduced to 80 ALCX/week and 200 ALCX/week respectively. The alUSD pool was essentially stopped as a result of a possible attack vector on Beethoven. Beethoven will indicate to Alchemix when the alUSD pool is ready to restart.
alAssets on Curve
The largest change percentage-wise happened in the Curve alAsset pools. In order to maintain sufficient liquidity, emissions to Curve pools have been kept largely stable at 2000 ALCX/week for alETH-ETH and alUSD-FRAXBP, and 250 ALCX/week for alUSD-3CRV, even with constantly dropping emissions. This means that since the last emission update, the percentage of emissions going to curve pools has increased considerably.
General Multisig rights
When veALCX launches veALCX holders will vote on gauges to direct emissions. In practice, the goal is that this replaces the need to maintain emissions breakdowns for approved liquidity pools. However, there would likely still be a need to run some flat-rate bribes as well as multi-week trials of new pools. The intent is that governance can still dictate some % of emissions to go to the treasury, as well as dictate the spending of the treasury for flat rate bribes and/or trials. At the conclusion of trials, governance could vote to add the pools as a gauge, perhaps including bribes for veALCX holders from the partner.
However, there might be smaller changes that need to be made until the launch of veALCX, and the multisig would like to have a certain level of discretion in making these changes without the need to go through governance. The following framework is proposed:
The Alchemix dev multisig is allowed to adjust ALCX emissions among the pools specified in this AIP to any reasonable degree that it deems to be most efficient, and said Alchemix dev multisig is allowed to allocate a maximum of 1000 ALCX/week to new gauges or pools on top of the total emissions defined in this proposal without consulting governance. At a minimum of 48 hours prior to any adjustment to ALCX emissions being made pursuant to this AIP, the pending ALCX emissions will be announced in the main Alchemix discord in the #governance-proposals channel in order to give active users an opportunity to comment and in order to give active users an opportunity to make any adjustments that they need to make. These permissions for the Alchemix dev multisig to adjust ALCX emissions without governance will sunset at the end of calendar year 2023 UTC OR when veALCX launches, whichever comes sooner, unless governance votes to extend these permissions.
Summary
The currently defined distribution of emissions is as follows:
- ALCX-ETH Balancer pool: 20% (Upon [AIP-82-A] execution)
- gALCX: 13%
- Saddle alETH: 2%
- Going to treasury: 65%
Treasury ALCX is split among the below gauges:
- alETH-ETH Curve: 2000 ALCX/week
- alUSD-FRAXBP Curve: 2000 ALCX/week
- alUSD-3CRV Curve: 250 ALCX/week
- L2D4 Arbitrum: $2k/week
- Beethoven X alUSD-USDC: 80 ALCX/week
- SpookySwap gALCX-FTM: 200 ALCX/week
As per the proposal, the Pancakeswap alETH-ETH & ALCX/alETH pools would receive $30k worth of ALCX from the treasury for the 2-month trial period.
It is important to note, that these percentages only utilize the base emissions, and they do not contain the ALCX rebates that the protocol receives as bribes from voting for our own pools.
Voting
Voting is single-choice.
- A choice of “Approval” accepts the percentage-wise change of emissions, the temporary emissions framework and greenlights the trial to deploy two alETH pools on PancakeSwap on Ethereum mainnet.
- A choice of “Disapproval” rejects the current emission distribution and calls for a discussion and a new proposal on a different path forward.
- Abstain
