I disagree with paying further incentives for that pool as well. Interlay's uniqueness is to be the best BTC decentralized bridge and does not need to maintain the DEX feature for iBTC. There are other DEX in the eco who can do that better and we should cooperate with them. I do not see the point in maintaining the iBTC/DOT and iBTC/Usdt pools with these still "high" APYs as liquidity providers don´t need to hold INTR. That means only sell pressure for INTR. 
Can you provide reasons or numbers for example for accrued fees in the past months that justify maintaining these pools incentivized?
I would agree with the following liquidity providers' incentives:
 5% APY for iBTC/USDT or 15% APY for iBTC/INTR and 18% for DOT/INTR.


[@wd8h...k6WD](wd8h7hgThpCryGBqiDL4ESVTq4ucst3U96Tvb6FVP6wREk6WD-interlay) 
I would like to invite you and everyone else to discuss the topic in our discord: https://discord.com/channels/745259537707040778/1163407068686975026/1163407071325204490

To your points:
1. `Interlay's uniqueness is to be the best BTC decentralized bridge and does not need to maintain the DEX feature for iBTC`
Yes, Interlays main product is iBTC. However, there are currently no other use cases for iBTC (other than liquidity provision) outside of Interlay's DeFi hub where you can use it as collateral for borrowing. While this sounds like small win, it opens the door for other products such as the BTC staking product, leveraged trading etc. Apart from that, maintaining liquidity on Interlay is important to ensure borrower and vault liquidations can happen quickly without moving funds cross-chain.

I agree with you that maintaining the DeFi hub may only be an interim solution until iBTC is being more widely adopted in the ecosystem. But as long as this is not the case I think it would be detrimental to completely abandon the DeFi hub.

2. `Can you provide reasons or numbers for example for accrued fees in the past months that justify maintaining these pools incentivized?`
The trading fees were set to zero as per governance decision when the hub launched to attract trader. Estimating the APY that would be generated by setting fees is difficult and depends on many factors but I think something within the range of 5-15% APY could be realistic and I'm happy to discuss this further and create a separate proposal for that.

3. `I would agree with the following liquidity providers' incentives:
5% APY for iBTC/USDT or 15% APY for iBTC/INTR and 18% for DOT/INTR.`
It may have been misleading since I showed `Current APY` and `New APY` in the table in the discussion post, which was only meant to show that rewards would be lowered by 50%. In fact, the community can only decide about the amount of INTR to be distributed per block / per period. Given that the pools had APYs of 33%-60%, it is likely that LPs require these APYs to provide more capital. The result of reducing the rewards will therefore most likely be that people remove some capital up to the point where the TVL is ~50% lower and the APY is again between 33%-60%. 
Reducing the INTR rewards for a pool such as iBTC/USDT to 5% (based on recent TVL) should therefore lead to massive capital outflows, which in turn would lead to low liquidity, massive slippage and lower volume.

I think it is also important to realize that the incentives for the DeFi hub are relatively small compared to what the DAO currently pays out as vault rewards (~25% of vault reward emissions). By redirecting a part of these rewards to staker, the plan is to reduce selling pressure of the token by making it more attractive to stake rather than to sell INTR. 

Again, you're invited to also share your thoughts in discord to have a more interactive discussion and address all your points and question further.

[@wdB3...ay33](wdB34NMMEU8je5TtMownSZ9LMHWY5oWYfyGqvw9UfRsR6ay33-interlay) Thanks for the extended answer! The link leads nowhere! Therefore here is the reply:
1. "no other use cases for iBTC (other than liquidity provision) outside of Interlay's DeFi hub", then there is no reason for a high APY = no competition.
2. "Estimating the APY that would be generated by setting fees is difficult and depends on many factors but I think something within the range of 5-15% APY could be realistic". I don't know how, but if there were accrued fees to "buy back INTR" or something that benefits INTR, it would be a good point for INTR holders to support a proposal.
3. "Given that the pools had APYs of 33%-60%, it is likely that LPs require these APYs"...yes, LPs would be happy at the cost of INTR holders like in the past months.
4.  "The incentives for the DeFi hub are relatively small compared to what the DAO currently pays out as vault rewards". Yes, I see on subscan vault operator whales selling millions of INTR...These high APY at these prices are crazy every few days. 

My short answer is: It is equally urgent to improve the main product "iBTC bridge" and help INTR´s sustainability. The "dream of DeFi hub" already has almost taken INTR to oblivion. [Edited: It seems that the ever-selling pressure is coming from the high vault rewards; maintaining pool rewards would make it even worse].
Tbh, I tend to vote against all rewards in INTR until INTR is back at least above $0.05 unless the proposal convinces me that INTR will benefit from it.


- Reduce or remove incentives from pools.
- Increase or sustain incentives for vaults.



No pool incentives pls. There's no direct benefit to iBTC bridge capacity. Agree with most of the community's sentiment: focus on being the best iBTC issuer, and stop trying to bootstrap a DEX when we clearly can't afford it right now (just let other DEX projects like HydraDX handle iBTC swaps for us).

Either scrap the pool incentives entirely, or redirect to vault / lending (at least you can use lending collateral to scale iBTC).

I think my point should be reconfirmed:

1. Agreed to reduce Vaults rewards to about 30%-35% (according to the previous discussion and proposal, the remaining rewards will be redirected to INTR staking)

2. Further reduce the rewards of the liquidity pool (retaining the operation of some popular pools can improve the integrity and security of the Interlay project)

3. Conduct airdrops or other incentives for long-term pledgers of early Intr tokens to maintain the confidence of early and long-term investors (this topic has been discussed in off-chain voting)

4. Add support for hardware wallets as soon as possible.

5. The cancellation or change of the inflation rate is not an emergency and the above proposals should be prioritized

[@wdC8...MoTd](wdC8MSE5sT9EBuSHiwtcMYmB9u8b7Qeejbvueki8aZJucMoTd-interlay) 
1. One of the next item on the governance list
2. This proposal already reduces by 50% which is quite massive IMO. We can review if we can/should reduce it further once we see the impact of this proposal on liquidity.
3. Shouldn't higher staking rewards for long-term holder cater this?
4. Unfortunately this is blocked by ledger who is blocking app submissions to their store (for adding support for new tokens) but AFAIK Parity is working on a general solution for all parachain assets but nothing Interlay as a team can really to do speed this up I think.
5. Agreed

The renewable of the incentive program seems to me important to avoid a kintsugi like evolution, since interlay pools may contribute to iBTC onboarding (bridge, LP and lending market in the same interface , rather than interlay bridge then bridge to other parachain to use iBTC...), the 90d renewal would help, waiting for omnipool to grow. And the APR/APY of deposits in omnipool isn't that clear, and it seems that when depositing one asset, your exposed to the fluctuations of all the others, which isn't of great value in the actual market conditions.

we need incentives, if not, liquidity will go out... as in Kintsugi, and iBTC won't become a solid asset

I've never been a fan of the DeFi hub. Interlay should focus on providing a decent product with iBTC and getting that product adopted. Leave the DEXes to the specialists like HydraDX and Stellaswap.

Based on the results of the latest poll (https://interlay.subsquare.io/posts/35), This proposal suggests to renew the rewards as described in the discussion post for another three month and redirect the residual amount to staking. 

**PLEASE NOTE THAT THIS PROPOSAL IS ONLY FOR RENEWAL OF DEFI HUB INCENTIVES.**

The renewal of the DeFi hub incentives is a pressing one, the previous incentives which ran out this week has resulted in massive outflows of capital. Therefore, this proposal has been put forth first.

This proposal **DOESN'T** provide for action items related to vault rewards or depositing 12.5m INTR token into HydraDX’s Omnipool. Separate proposals for the same will be put forth very soon.

DeFi Hub Incentives