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Rewards - Sif's Ascension
Monitor and claim Rowan Rewards from providing LP
Sifchain has launched a revamped liquidity mining rewards program called Sif's Ascension. This serves as a replacement for Sif’s Expansion, and is a new rewards structure that complements PMTP and enables flexible rewards governance.
Sif’s Ascension is a program that holds the following principals:
- Reduce governance overhead by having an automated, transparent, and predictable process for the calculation of Sif’s Ascension liquidity mining rewards
- Provide a long-term but flexible plan for future ROWAN emissions for LM rewards while complementing features like PMTP and permissionless token listings
- Provide flexibility when it comes to extra incentives to incentivize partnerships, popular pools, newly created pools, etc.
The ‘Sif’s Ascension APR & ROWAN emission spreadsheet’ will be used to determine the parameter inputs for this program. The spreadsheet will calculate the parameter inputs every Monday, and the parameters will be implemented in a new iteration of the rewards program on the following Monday. Each iteration of the rewards program will last for one week.
The ‘Pools of the People’ to receive bonus multipliers will be LUNA, ATOM, ETH, USDC & JUNO. All changes to the “Sif’s Ascension APR & ROWAN emission” spreadsheet or changes to the pools that will receive bonus multipliers will require an on-chain signaling proposal to implement them into a subsequent iteration of Sif’s Ascension.
As mentioned above, to govern Sif’s Ascension, anyone can raise a signaling governance proposal to specify a deviation from the ‘Sif’s Ascension APR & ROWAN emission’ spreadsheet. The proposal should follow the standard process of discussion period first, and then an on-chain signaling proposal.
In order to provide ample time for governance and changes, we propose a consistent schedule for Sif’s Ascension iterations.
- Each Sif’s Ascension iteration will last for one week and will begin each Monday.
- Parameter inputs will be calculated and loaded into the upcoming Sif’s Ascension iteration on the Monday prior to the iteration.
- The ‘Sif’s Ascension APR & ROWAN emission spreadsheet will be used to calculate the parameter inputs every Monday, and the parameters will be implemented in a new iteration of the rewards program on the following Monday.
- Parameter Input Date: Monday, April 11th
- Launch Date: Monday, April 18th
- Program Duration: April 18th - April 25th (one week)
- Parameter Input Date: Monday, April 18th
- Launch Date: Monday, April 25th
- Program Duration: April 25th - May 2nd (one week)
The ‘Sif’s Ascension APR & ROWAN emission’ spreadsheet contains 5 governable variables to calculate parameters that will be used in the weekly iteration of Sif’s Ascension.
- Calculate Sif’s Ascension parameter inputs
- Steadily reduce ROWAN inflation while retaining an attractive rewards structure
- Keep staking APRs and LM rewards APRs competitive
- Incentivize new pool structures
- Limit the amount of ROWAN that can be emitted per week
The following is a list of the governable variables used in the spreadsheet to calculate the parameters that will be used for each weekly Sif’s Ascension iteration:
- 1.Tentative ROWAN Emission Schedule: This schedule outlines a plan for 750 million ROWAN to be emitted over 60 weeks. The emission schedule breakdown is shown in the tab on the spreadsheet. This is a tentative schedule and determines the max ROWAN spend per week at the current price of ROWAN. If the ROWAN price were to increase, then the actual amount of weekly ROWAN emitted would be much lower.
- 2.LP Subsidy Factor for Sif’s Choice Pools: This means the cap of the Pools of People APR will be 1.35x Staking APR. (This is the extra bonus to incentivize strategic ‘pools of the people’)
- 3.LP Subsidy Factor for New Pools: This is a 1.35x Staking APR factor, meant to incentivize newly onboarded tokens and is in line with the Pool of People bonus.
- 4.Total Weekly ROWAN Cap Factor: The max overflow above the tentative emission schedule is capped at 10% or 1.1x the tentative ROWAN emissions.
- 5.Max Base APR Factor: We are proposing a 0.75x factor of Staking APR for all non-bonus pools, but this number is contingent upon SifDAO’s approval that the pool should receive rewards. Currently all non-bonus pools on Sifchain will receive this incentive.
The spreadsheet will calculate the Rewards Module Parameters, which will be input into each iteration of a Sif’s Ascension rewards program in an array structure. These parameters are:
- RewardStartBlock: Starting block of current rewards program
- RewardEndBlock: Ending block of current rewards program
- RewardAllocation: Total allocation for current rewards program
- PoolMultiplier: An optional parameter, specifying a multiple to be applied to the reward incentives of a given pool, set on a per-pool basis.
- Default Pool Multiplier: This parameter sets a multiplier that all new pools will receive if not specified. For example, if the default pool multiplier is zero, all pools that receive rewards will need to be specified in the input array.
- If I already have liquidity that is pooled, do I need to do anything to ensure I am eligible for Sif’s Ascension?
- No! Simply leave your liquidity where it is and it will being earning rewards per Sif’s Ascension’s logic.
- Will Sif’s Ascension contain IL mitigation?
- No, Sif’s Ascension will not contain any IL Mitigation. This was a feature present in previous reward programs, but will not be present in Sif’s Ascension.
- Will liquidity that is in the 7-day unbonding period still earn rewards?
- Yes, Liquidity that is in an unbonding request will still earn rewards.
- Will liquidity that has ended the 7-day unbonding period, but has not been fully removed yet, still earn rewards?
- Yes, Liquidity that has gone through a successful unbonding request of 7-days and is the 3-day window where the liquidity can be fully remove, will also earn rewards.
- When will I stop earning rewards on my liquidity?
- Rewards are always accrued until a user actually fully removes liquidity.
- Will your existing pool be locked, how will that work?
- At launch, all liquidity will automatically start earning rewards via Sif's Ascension. All liquidity is also subject to a 7-day unbonding period. You can submit an unbonding request to remove liquidity from any pools at any time. Users may only have 1 unbonding request per pool at any time. After the 7-day unbond period, that liquidity can be fully withdrawn.
- What are the expected APRs? Is every pool the same?
- Every pool will not have the same APR. For estimations on APRs from Sif's Ascension, please refer to this spreadsheet: https://docs.google.com/spreadsheets/d/13pDImAScpAUYfX7HpSzvAhZvlleotDmIzbgZEh557EE/edit#gid=19950974. This does NOT include impacts from PMTP (and the expectation is that PMTP will increase these APRs).
- How often will rewards be paid out?
- Rewards are deposited to the pool every block (~6 seconds). This means that all rewards are automatically compounded for each user.
- How do the pools balance themselves if rewards are always auto-compounding (thereby creating a scarcity of the paired token vs the rowan)?
- The pools will be balanced by arbitrage! One exciting synergy between the new rewards module and PMTP is that both features create constant arbitrage opportunities, driving trade volume and swap fees for liquidity providers.
- 1.block allocation = (Rewards Amount / # blocks for distribution period)
- 2.adjusted pool depth = pool depth * pool multiplier
- 3.adjusted total pool depth = sum [adjusted pool depth]
- 4.pool distribution (per block) = block allocation * (adjusted pool depth / adjusted total pool depth)
Note: pool depth = ROWAN depth in that pool
The spreadsheet outputs the following parameters:
- Rewards Amount = 1,000,000Rowan
- NumberOfBlocks = end block - start block = 100
- pool multiplier map = [1=1.1, 2=1.5, 4=.9, 6=.8] (subset of pools with non 1 multiplier)
- 1.Block Allocation = 1,000,000 / 100 = 10,000Rowan
- 2.adjusted pool depth [pool 1] = 500,000 * 1.1 = 550,000
- 3.adjusted pool depth = sum of calcs from #2 = 15,000,000
- 4.pool #1 distribution (per block) = 10,000 * (550,000 / 15,000,000) = 366 (round to whole)
Last modified 1yr ago