MIP #8: New LP Farming Framework

How to distribute the farm?

The current contract has a total of 500 muse per day divided between 16 allocation points. The MUSE-ETH pool gets 8 allocation points (250 muse a day), in our opinion we shouldn’t change it.

How to distribute the remaining 8 allocation points?

6 token pairs will be eligible to receive 1 allocation point each for 30 days, the accredited list is re-evaluated after 30 days to ensure that there is maximum capital efficiency for the NFT20 ecosystem.

The remaining 2 points will be allocated as per current market dynamics. This could be for example: For a new project that is taking off organically (ie MOON CATS) or for a new project that is doing something revolutionary and we think we should reward and support them with our DAO.

How to decide who gets added to the rewards program every 30 days?

We do not think we should be having votes every 30 days for who gets rewards unless there are more than 6-8 clear projects that are using the platform clearly, we think the answer should always be clear: the pools that are used the most to swap, trade and sell NFTs.

This is easy to decide based on stats, in the case of a strong disagreement within the community we could always go to on chain voting.

Based on experience, this is how Sushi mostly does it, they call founders on the phone and offer them to be on Onsen.

Who should be on the first 7 starting pools?

We think the Hashmass, Moon Cats, MEME, NDR, Nifty Dudes and Bastard Punks and ROPE should each get 1 alloc point.

This is based on those pools being the most active, and as we don’t have a better alternative right now (not enough active pools).

The remaining 1 alloc point will be decided as per market dynamics.

If this proposal is approved the change would happen immediately following an on chain vote.
On April 1st we’ll reevaluate (as most pools besides the MoonCat one will have way over 30days of being active) all pools and keep the 6 that are the most used, and free up 1 alloc point to use as per market dynamic

Our thoughts on LP incentives:

The more incentives we give out the more we are on the wrong track. A product should be used for it’s value added and incentives (for LPs, for users, for NFT projects, for the DAO, etc) should be aligned and designed at a protocol level, not by subsidizing one part with MUSE.

Check out the results on the Snapshot vote