Beam Dex Farming Allocation - To vote on Epoch 18

BeamX DAO
1

DAO Improvement Proposal for Epoch 18:
Allocation of 6,000,000 BEAMX (6%) out of Liquidity Providing Allocation pool toward Beam DEX Liquidity Mining Program for 2 Years.

Overview:
The purpose of this proposal is to allocate an amount of 6,000,000 BEAMX out of a portion of the DAO’s Liquidity Providing pool. This will represent 16.6% of the pool (or 6% of total BEAMX issuance). The allocation will be used towards the Liquidity Mining program for Beam DEX.

Details:
The DAO will allocate 6,000,000 BEAMX of its Liquidity Providing Allocation towards farming activity for the next 2 years.

The farming activity will distribute 250K BEAMX each month for the next two years to support ongoing liquidity over a set of pools chosen by the DAO Proposed set of pools will include Beam / BeamX pool as well as BEAM/NPH (Nephrite Stable Coin) and BEAMX/NPH pools when Nephrite project launches.

The proposed allocation will take into account the Early Bird bonus available to those committing the liquidity in either Price Discover or Liquidity Accumulation phases.

The exact distribution of the farming rewards within the proposed amount of BeamX allocation within this proposal may be changed in the future according to DAO voting to keep the ecosystem alive and healthy.

Benefits:

Provides a consistent and sustainable incentive for LPs over chosen DAO pool for the next two years.

Enables DAO members to accumulate BeamX and have more weight on future votes, which promotes active participation and engagement in the DAO.

Offers another yield stream for both BEAM and BEAMX holders, which increases the overall value proposition of the DAO ecosystem.

Notes:

This proposal does not detail the specific farming percentage each DAO pool will receive.

The DAO will periodically review the effectiveness of the farming rewards and make necessary adjustments based on the feedback and results, which promotes a culture of continuous improvement and adaptation.

Conclusion: This proposal suggests allocating 6% of the DAO’s Liquidity Providing Allocation towards farming activity for the next two years, which would equal to 250K BEAMX per month. This farming activity will provide a consistent and sustainable incentive for LPs over chosen DAO pool and enable DAO members to accumulate BeamX and have more weight on future votes. The DAO will periodically review the effectiveness of the farming rewards and make necessary adjustments based on the feedback and results.

8 Likes
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May I know what is the allocation of BeamX in the last staking program? Also the period for which people are allowed to stake.
For a 2-year Liquidity Mining program I suppose we could tune up the total allocation a bit, e.g. 6% → 8%.
Just a personal opinion though, 6% is still fine with me.

1 Like
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Will the staking algorithm be fixed to be more fair to large volume stakers?

During the last staking campaign 2 years ago, you could benefit more by depositing smaller amounts with several wallets, rather than just one large deposit from 1 wallet.

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It could be scaled down to a lower number than 250K to make sure this will go on for longer.
100K each month over 5 years or even 50K over 10 would be generous when I look at some pools on sushi swap offering 50 sushi per day (1500-1600 per month) which is enough to incentivize people to add about 150$k in liquidity. On Sushiswap it’s distributed over a ton of pools as opposed to 3 as suggested here.
I think the staking that happened last time also could have benefited from a lower return for a longer period of time. People are still asking if they can stake or when they can do it again. Farming and staking both add a benefit to holding beam which could increase demand thus increase the price.

What will happen after the farming period? Liquidity should still be incentivized by for example an APR accumulated through transaction fees on the dex. Because no APR and no farm means no liquidity and thus no functional dex.

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I think 2 years is fine. We can do another vote 2 years later to see if BeamX allocation is needed for another few years.

2 Likes
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2 years is a short time and would allocate beamx to small number of people again.
And less in circulation can be more value if it’s not done in extremes

1 Like
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I would say we lower the allocation a bit to 5% over 2 years (2023-2025) and when the staking period almost come to an end we do a vote again to see if allocating another 5% for 2 years (2025-2027) is needed.
I think making a decision for 5 years straight is not flexible.

2 Likes
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last staking program was “risk free” it lasted 3 month and distributed 1M BeamX

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The BeamBots are for the vote (with minor improvement suggestion).

We think we need to extend the 6M to an additional year, making the reward 166K per month and 55K BeamX per pool (that is about 1.8K per day per pool).

When you think about it, the DAO creates a nice diversity for Beam/BeamX yield options.

We could either LP some Beams to Nephrite and get some BeamX as reward.

Then can either become an LP on any of the DAO pools OR put the BeamX in the voting staking.

And here comes our suggestion. To avoid conflict of interest, where users prefer to LP to the DEX instead of participating in the DAO voting. The voting must come with incentive as well (something that was mentioned in the past but didn’t hear anything in this regards recently). This will also farther diversify the yield options and will cause more users to become active voters.

In short, we are pro with minor improvement of extending it to 3 year, but we do want to hear about incentivized voting to avoid the conflict (which should reward around 100K BeamX a vote to compete with other yield options as mentnmioed above).

Beam DEX for the win!

3 Likes
10

Allocate rewards for those who vote sounds nice.
But could someone utilize this mechanism to create lots of zombie votes and claim the reward?

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I agree with the sense, timing and quantity of the BeamX allocation. I also agree with BeamBots’ proposal to reward the voting. As in many other protocols, if you have to stake in order to be able to vote, you should also receive incentives in BeamX, and these incentives should be separate from the allocation for the DEX. For example, on Moonwell (a lending platform on Polkadot) there is a mechanism for securing the protocol called “Safety Module”, which mitigates against events that create a deficit in the markets of the Moonwell ecosystem. When an event happens, the Safety Module is used to cover the losses by selling the assets needed to mitigate the deficit. Those who participate in the Safety Module are rewarded with the platform’s coins and these rewards are separate from those given to LP providers. I think we could set something similar, which could also contribute to secure the DEX.
That being said, the BeamX allocation is a temporary reward that should be integrated, as soon as possible, by another set of incentives that use the earnings from the DEX. In my view, a redistribution of the earnings coming from the fees collected by the DEX is potentially a major and sustainable form of income in the long term for BEAM investors.
A last thing. When we staked Beam last year, there was no APR provided. I think is very important to provide an APR for the stakers.

1 Like
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I supppose we need another vote on “vote incentives”

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Shouldn’t we also incentivize the LPs of the four main CAs of the bridge too? I.e. pairs between bETH, bWBTC, bUSDT, bDAI on one side, and Beam, BeamX and NPH on other.

Yes, that multiplies the LPs to reward, but these specific LPs could be rewarded less than the 3 main pairs (Beam, BeamX, NPH).

The reason for adding these rewards to these specifics pairs is that these LPs will be the ones helping bring (and keep) liquidity from the outside world (the Ethereum, Bitcoin and USD worlds) into the Beam ecosystem.

They will also help arbitrage Beam and BeamX prices vs the external world. Otherwise only NPH (which will be linked to USD price) would be playing that role.

2 Likes
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Will there be a slippage protection setting on the swaps? Like don’t do my swap if the slippage is > x %