Idea for Enhanced Farming Systems

General Discussion
1

Dear MuesliSwap Community,

As part of our ongoing commitment to evolve MuesliSwap into a fully Decentralized Autonomous Organization (DAO), we are excited to invite you to a discussion on a critical aspect of our transition: implementing a decentralized staking & farming system. This initiative will be directly governed by our upcoming on-chain voting system, ensuring community-driven decision-making at the core of our operations.

Introducing Decentralized Farming Systems:

To bolster our transition into a DAO and enhance liquidity across the platform, we propose the introduction of two distinct farming programs. We designed each program to empower different aspects of farming in our ecosystem, ensuring broad and effective incentivization:

1. Top Pools:

  • Objective: Incentivize the top pools by Total Value Locked (TVL).
  • Mechanism: This program will cater to the N largest pools (by TVL in Ada), allocating a percentage of rewards proportional to each pool’s size. These top pools will be continuously updated and maintained in a smart contract.

2. Community Choice Rewards:

  • Objective: Support liquidity provision for new and emerging tokens backed by significant community interest.
  • Mechanism: Through governance proposals, specific rewards will be allocated for a fixed time to incentivize growth in these pools until they qualify for the Top Pools list.

Critical Parameters for Initial Discussion:

  • N: The number of pools to include in the Top Pools list.
  • X: The fraction of total rewards allocated to Top Pools, with the remainder going to Community Choice Rewards.

These parameters will be dynamically adjustable via governance proposals, ensuring flexibility and responsiveness to community feedback. Initially, we plan to suggest an off-chain vote proposal to set the initial values.

We Invite Your Feedback:

This post serves as an open invitation for discussion. Your insights are invaluable, and we encourage you to share your thoughts on these proposals or suggest alternative ideas for farming programs. Your active participation is crucial as we take this pioneering step towards making MuesliSwap the first true DAO on the Cardano network.

We are looking forward to your constructive feedback and enthusiastic participation in the discussions!

6 Likes
2

Love this idea. Would be fantastic to see it implemented along side DAO launch. Keep up the great work Muesli and keep these ideas rolling

3

Thanks for your continued development, Team Muesli.

  1. I support the idea of setting N to 3 top pools to begin, or up to as many as 5. This is based on the need to concentrate rewards, ensuring the highest liquidity pools remain selective, robust and competitive.

  2. I would suggest allocating 70% of the total rewards to the Top Pools and the remaining 30% to the Community Choice Rewards. This ratio acknowledges the role that top pools play in maintaining liquidity and trading volume, while also supporting the growth of emerging tokens and incentivizing diversity within our ecosystem. At a minimum, Top Pools should earn a majority of rewards.

My understanding is that these new rewards come from a combination of trading fees generated on the platform, newly minted tokens specifically allocated for this purpose, or possibly external funding sources aimed at promoting liquidity and activity on MuesliSwap. I wouldn’t necessarily want to see new tokens introduced for this purpose because it might cause dilution.

Everyone Be Well!

4

Nice ideas. Why not have just 1 Top Pool, which changes every quarter or so by community vote? There would be sometime attention-grabbing about a token having the Top Pool and it could generate more interest.

For the proportion of total rewards, could you clarify what this means? Would this be how much of the trading fees go towards these rewards? Because in addition to this I think the community would also be interested in a buyback mechanism for the Milk token. This could feed the staking vaults and make them more sustainable in the long run, so it’s important to get a balance between these initiatives and leave room for future developments imo.