Next round of liquidity mining parameter setting proposals (to be discussed)

Governance
#1

After constructive discussions in the community and absorbing constructive opinions from community enthusiasts such as qiankun, Tobias, Xiaokong, etc., the next round of liquidity mining parameter setting proposals are as follows, now we invite the community to discuss:

1. The liquidity incentives of Balancer and Equator trading pools are unified at 26,800 KUN/day.

The funds in these two liquidity pools bear the potential loss of KUN price fluctuations, sufficient income is needed to cover their losses. According to the current price of 1 KUN = 1 QUSD, if two liquidity pools are expected to guarantee an annualized return of about 200%, in theory, when the KUN price remains unchanged, the total value that each pool can carry is 4.8 million QUSD (if there are any calculation errors, community members are welcome to point out). That is, without considering the continued deposit of KUN, each trading pool can carry about 240,000 KUN without lowering the price of it. In theory, it can effectively absorb the amount of KUN on the current two networks.

2. Increase the liquidity trading pool of Uniswap Sakeswap and Pancake. The specific configuration parameters are as follows:

Initial the ETH/QUSD trading pool on Uniswap, and LP lockup will receive 2888 KUN/day mining rewards;

The setting basis is that the annualized income target of the trading pool is 50%, and the expected lock-up scale is 1 million QUSD and 1 million QUSD equivalent ETH, then the daily lock-up income of LP tokens needs to be greater than 2700 QUSD, according to 1 KUN = 1 QUSD price calculation, the mining reward of 2888 KUN/day can meet this theoretical value.

For the KUN/QUSD trading pair, the target lock-up amount can be set to 400,000 QUSD, that is, 200,000 KUN and 200,000 QUSD. The target annualized return of the trading pool is 50%, and the KUN value of the daily income is about 550 QUSD, then The mining reward of 588 KUN/day can meet this theoretical value.

3. Initial the ETH/QUSD trading pool in Sakeswap, and LP lockup will get 888 KUN/day mining rewards;

The basis for the setting is that Sakeswap was introduced by the KOL of the YFII community, has a credible endorsement, and Sakeswap is very active in cooperation.

Sake’s current TVL is about 6.2 million QUSD. According to the data shown on https://info.sakeswap.finance/home, the ETH/QUSD trading pool is expected to reach a lock-up value of about 600,000 QUSD (ie. 625 ETH, 300,000 QUSD), the target annualized return of the trading pool is 50%, the KUN value of the daily income is about 820 QUSD, the mining reward of 888 KUN/day can meet the theoretical value.

4. Initial BNB/QUSD and KUN/QUSD trading pairs on Pancake.

Pancake's current TVL is about 100 million QUSD, its size is similar to Uniswap, so the target size of the trading pool can be comparable to Uniswap.

Initial the BNB/QUSD trading pool. The annualized income target of the trading pool LP is 50%. The expected lock-up size is 1 million QUSD and 1 million QUSD equivalent BNB. The daily lock-up income of LP tokens needs to be greater than 2700 QUSD. Take 1 KUN = 1 QUSD as price calculation, the mining reward of 2888 KUN/day can meet this theoretical value.

For the KUN/QUSD trading pair, the target lock-up amount can be set to 400,000 QUSD, which is 200,000 KUN and 200,000 QUSD. The target annualized return of the trading pool is 50%. The KUN value of the daily income is about 550 QUSD, the 588 KUN/day mining reward can meet this theoretical value.

5. Open BNB/QUSD trading pair on Unisave (well-known project Y3D)

Unisave currently has a total lock-up volume of approximately 1.8 million QUSD. If the BNB/QUSD trading pool is opened, the expected lock-up size is 200,000 QUSD and approximately 7,150 BNB. The target annualized return of the trading pool is 50%, and the daily income KUN value is approximately 550 QUSD, mining reward of 588 KUN/day can meet this theoretical value.

6. Add QUSD and BUSD, USDT, USDC, DAI trading pairs on StableXSwap, and provide liquidity incentives appropriately:

Initial QUSD/BUSD QUSD/USDT QUSD/USDC trading pair, and lock the LP token to the mining contract for mining. Reward: LP token lockup reward for each trading pair is 688 KUN/day, lasting for 14 days.

Setting basis: Since StableXSwap has just been launched, the target value of stablecoin deposit locked in each trading pair is 1 million QUSD, and an annualized target value of 25% is given. The KUN value of daily income is about 685 QUSD, then mining reward of 688 KUN/day in a pool can meet this theoretical value.

Initial the QUSD/DAI trading pair, set the stablecoin deposit in the trading pool as the target value of 500,000 QUSD, and give the annual return target value of 25%. The KUN value of the daily income is about 345 QUSD, so the QUSD/DAI pool is 388 KUN Mining rewards per day can meet this theoretical value.

It should be noted that after communicating with StableXSwap, its algorithm is currently a fork of Uniswap, and the calculation formula is x*y=k, which means that when the size of the pool is small, the transaction slippage will be very high, hereby we remind every QIAN community members pay attention to slippage issue when the DEX is online, reduce the frequency of transactions, and perform swap operations after the depth of the pool increases.

Period of this round of mining is unified to 14 days.

According to the development/market/operation progress of each cooperative project, the opening time of the mining pool will also vary. Finally, all community members are invited to discuss the above proposed liquidity mining parameters. If there is no obvious objection or modification in the comments of this post, David will initiate a vote for the proposal after 24 hours. The voting lasts for 24 hours, and immediately after the end Enter the implementation phase.

#2

About "6. Add QUSD and BUSD, USDT, USDC, DAI trading pairs on StableXSwap, and provide liquidity incentives appropriately"

Since the circulating supply of USDC on BSC is not as high as BUSD and USDT:

Suggest that we bring down the QUSD/USDC pair to the same tier as QUSD/DAI, and with the same mining reward 388 KUN/day.
Meanwhile add those decreased reward from QUSD/USDC back to QUSD/BUSD and QUSD/USDT trading pairs

So the new proposed LP mining rewards for StableXSwap trading pairs:

  • QUSD/BUSD, QUSD/USDT: each pair 888 KUN/day, for 14 days
  • QUSD/USDC, QUSD/DAI: each pair 388 KUN/day, for 14 days

Please have a look at this proposal and advice if there is any better idea. Thanks so much!!

#3

I concur with JT. Thanks David and everyone from the Qian community for being so supportive. In our initial data, BUSD and USDT because they have the most supply on BSC, should be the larger pairs that are incentivized, and then USDC and DAI should have less since it is less available here, JT's data is very clear to me.

We will likely want to incentivize these pools with some vesting STAX to bolster rewards and welcome Qian community to come try Stablexswap :slight_smile: More details on this will come later

3 Likes
#4

Today I heard the second plan from the QIAN community. It is recommended to stop Equator’s liquidity incentives on the BSC network, and at the same time focus on Pancake for the KUN/QUSD trading pair. This way, on the one hand, the huge traffic on Pancake will pay attention to KUN. At the same time, the 50:50 liquidity pool will also greatly help the price increase, so there is a second set of plans. The differences between this plan and the existing plan are as follows:

1. Suspend Equator's trading pair incentives on the BSC network and open Pancake's KUN/QUSD trading pair at the same time

At present, the number of KUN circulating on the BSC chain is 252,949. Using 300,000 KUN as the benchmark value, assuming that 200,000 KUN enters the Pancake pool, at the current price of 1 KUN ≈ 1 QUSD, it corresponds to about 200,000 QUSD will be deposited.

Of course, we hope the funds that are optimistic about the value of KUN can also enter the pool in large quantities. Given a target amount of 1 million QUSD, the target price is about 1 KUN = 5 QUSD. According to this lock-up amount, Pancake's KUN/QUSD liquidity pool will lock up assets with a total value of about 2 million QUSD; given this part of the fund's annualized target income of 300%, it will be necessary to reward KUN worth about 16,438 QUSD every day.

Since KUN = 5 QUSD is the target price, the current market price of 1 KUN = 1 QUSD should be used as a reference when setting the reward. Therefore, the reward set is approximately 16,666 KUN/day, and the position is locked according to 200,000 KUN and 200,000 QUSD. According to the quantitative calculation, the actual initial annualized rate of return is about 1520%, which is expected to effectively attract the attention of the market and funds, and attract the single charge of QUSD into the KUN/QUSD liquidity pool, which can also push up the price of KUN.

In summary, in the next round of BSC liquidity incentives, Pancake's KUN/QUSD trading pair will be opened and 16,666 KUN/day mining rewards will be given for 14 days. At the same time, stop Equator's liquidity incentives.

2. According to the recommendations of the StableXSwap team, combined with the issuance of USDC and DAI on the BSC network, let's adjust the corresponding liquidity pool configuration as follows:

QUSD/BUSD, QUSD/USDT LP token lockup reward for each trading pair: 888 KUN/day for 14 days
QUSD/USDC, QUSD/DAI LP token lockup reward for each trading pair: 388 KUN/day for 14 days

The above changes are hereby notified to the community that the content of the two sets of plans will be displayed during voting for everyone to choose.

#5

Plan 3: While retaining the incentives of the Equator liquidity pool, give appropriate incentives to Pancake’s KUN/QUSD, with an annualized 200% as the target value, because Equator diverted part of the KUN, the Pancake liquidity pool is calculated based on the lock-up of 100,000 KUN, which need to configure a mining reward of 1088 KUN/day. For the Uniswap liquidity pool, the same daily KUN reward amount is also adopted to keep the two chains consistent.