Based on the discussion Next Steps for INTR Tokenomics, we would like to gauge sentiment for a proposal that would enact the following action items:
| Current Rewards 90 days | Current per block rewards | New per block rewards | New Rewards 90 days | |
|---|---|---|---|---|
| iBTC/USDT | 3,800,000 | 5.864197531 | 2.932098765 | 1,900,000 |
| iBTC/DOT | 2,000,000 | 3.086419753 | 1.543209877 | 1,000,000 |
| INTR/USDT | 2,000,000 | 3.086419753 | 0 | 0 |
| iBTC | 0 | 0 | 0 | 0 |
| DOT | 450,000 | 0.6944444444 | 0.3472222222 | 225,000 |
| USDT | 210,000 | 0.3240740741 | 0.162037037 | 105,000 |
| Vaults | 27,753,351 | 42.8292456 | 21.4146228 | 13,876,676 |
| Staking | 3,664,929 | 5.6557541660 | 33.5981547442 | 21,771,604 |
| Total | 39,878,280 | 61.54055532 | 59.99734545 | 38,878,280 |
Note: It's worth mentioning that the vault APY only includes INTR rewards. Any yield coming from the collateral (e.g. staking yield or lending yield+rewards) will accrue on top of the numbers in the table.
| Current APY | New APY | |
|---|---|---|
| iBTC/USDT - pool | 44.0% | 22.0% |
| iBTC/DOT - pool | 33.0% | 15.5% |
| INTR/USDT - pool | 60.0% | 0.0% |
| iBTC - lending | 0.0% | 0.0% |
| DOT - lending | 14.9% | 8.3% |
| USDT - lending | 11.4% | 8.0% |
| Vaults | 58.0% | 29.0% |
| INTR staking | 41.5% | 247.4% |
*EDIT: The amounts mentioned in the column "Current Rewards 90 days" where actually distributed over ~92 days, such that the current and new per block rewards were/are slightly lower what is displayed here. This does not change the total amount to be issued.
I would suggest slashing the lending APY further, while not slashing the vault rewards as much. We already see that collateral for vaults has dried up so there's no BTC capacity in the vaults. That will be accelerated.
But a very strong YES we should deposit INTR into Omnipool (and retain ownership) instead of continuing to pay out LP farming rewards.
Gauging from the current price of $INTR it looks like vault operators are expecting this proposal to go through, since most are holding on to their $INTR for the moment, so from that perspective it seems like the way to go.
I would second that vaults are the backbone of Interlay, so the incentive to run one has to be there and slashing the reward in half, does not seem like the solution.
Polkadot incentives are too low.
In this case, I think Staking is far superior in both risk and return. I don't think there is any rational reason for investing.
In other words, what I'm trying to say is that I think DOT's lending is difficult to operate.
It might be better for us to devote all our efforts to operating iBTC.
I want to vote separately about maintaining the iBTC/USDT and iBTC/DOT pool. 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.
Other than that, AYE for the proposal.
Edited: Okay, I may not have the solution to scaling the bridge, but I think the proposed points are good for making INTR more sustainable and possibly making running a vault more attractive... I just 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.
Edited