Give users FOX benefits such as rainfall, voting, and FOX Fuel for FOX in the farm

Hey foxes!

Curious to hear everyone’s thoughts on whether you should get any or all of the following benefits when FOX is in the Uniswap v2 liquidity pool:

  1. FOX Fuel
  2. Rainfall
  3. Voting power on SnapShot

I lean towards giving FOX the max utility and also not doing anything that could disincentivize providing liquidity. However, I am sympathetic to the give a mouse a cookie argument. In a future where there are multiple liquidity pools on multiple chains, where do we draw the line? Furthermore, maybe it’s not the worst thing in the world if you have to decide between benefits. Scarcity does have its benefits.

If the community likes this, the implementation is straightforward and doesn’t require any UI changes, just copy updates. I think ~$7,000 worth of FOX Tokens would be a fair bounty, but am open to feedback on this.

What do you guys think?

  • Give users as many FOX benefits as possible
  • Give users some of the FOX benefits when their FOX is in a liquidity pool/staked
  • Give users the choice between FOX benefits OR providing liquidity/farming

0 voters

7 Likes

IMO voting power is a no-brainer; it costs us nothing and the tokenomics would be somewhat perverse if on one hand we incentivized LPing via liquidity farming and on the other hand disenfranchised users for doing so. I’m more skeptical allowing the FOX Fuel/Rainfall benefits to accrue to LPers. I’m in favor in principle, but I’d want to be comfortable that I fully understood the implications before voting for it.

As an example off the top of my head, I personally am of the opinion that long-term a deep THORChain pool will be much more important for FOX’s future than the Uniswap one. Holding Uniswap LP tokens is obviously way easier to measure with a smart contract on the Ethereum chain than holding a THORChain LP position, though, and providing benefits to Uniswap LPers and not THORChain ones could end up shooting ourselves in the foot.

It would also certainly be important to make sure we allow only the LPers, and not the pools themselves, to claim any rewards in that case – no double dipping – and I have a feeling that it would also be important to make sure the benefits for holding LP tokens are scaled by the amount of FOX in the pool, which would mean that, with the size of the pool being constant, the same LP tokens would entitle you to more benefits if the price of FOX went down and less if it went up, because the number of FOX in the pool would grow or shrink accordingly. That might look pretty weird to the average user. FOX Fuel is calculated in USD so that might not matter much, but it would certainly affect Rainfall chances.

6 Likes

The more bennies the better. Especially for active users, if that’s something that could be determined.

1 Like

Definitely agree with this ^

2 Likes

Lp providers are already being incentivised, the current Apy for lp providers is currently the best across any defi chains. However circulating supply must also be considered, there are people who are not interested in the growth of any project they are only interested in profits they can get in the shortest time possible.

Lp providers can get additional incentives, they can benefit from Rainfall and other rewards available for holders because lp providers are actually the core of the Fox economy without liquidity Fox is not a good Fox but must be done in such a way that won’t push Fox token into dumpers hands.

A time is coming when Lp rewards won’t be attractive because of more liquidity providers.

Incentivise all in a way that won’t affect the Fox Tokenomics

1 Like

@willy I like this idea. How is it only a copy change? You said no UI changes - but would require code changes, yes? That’s what the $7k of FOX tokens bounty is for - the code changes needed - is that right? Thanks

2 Likes

Sorry I should clarify, the only front end requirements are copy related. Implementing the functionality to include FOX in the Univ2 pool requires backend changes but is straightforward and ShapeShift’s backend is already detecting these FOX balances

1 Like

Random thought – what if holding or staking LP tokens gave you MORE voting power than the equivalent amount of fox held in a wallet? All the more reason to provide liquidity.

Also I’m not sure I follow what you mean in your comments about the "dyne Univ2 pool ". Can you elaborate on that? I thought we were talking about adding logic to the shapeshift backend to account for fox that is locked up as an LP token when calculating rewards?

1 Like

whoops “dyne” is a typo and should have been “the”

thanks for catching :pray:

You’re correct this is about adding logic to shapeshift’s backend to account for FOX in liquidity pools. Also, voting power would need to be implemented on the snapshot side by making a PR to their repo to add our custom “strategy” (Strategies - Snapshot)

1 Like