PIP-002: Reallocating rewards from wAsset farms

Author: @bernd.tez

Summary

The dev team proposes to end the farms that include wrapped assets of the Wrap Protocol because of the rebrand from wASSET to ASSET.e. At the same time we propose to use the unused emissions for incentivization of liquidity pools that will be compatible with the new Plenty Network.

Background

The assets bridged from Ethereum will be rebranded from wASSET to ASSET.e. This process requires users to actively swap their wrapped assets. This migration will take place early May 2022.

The goal is to grow liquidity in liquidity pools compatible with the new Plenty Network before launch. Being compatible with the new Plenty Network means that before the launch of the PLY & vePLY NFT system the trading fees accumulate in the liquidity pool. After relaunch the trading fees will be added to the attached gauges and are allocated to vePLY NFT voters.

Motivation

The wrapped asset rebrand gives us the opportunity to redirect PLENTY emissions from the following farms that are required to close due to the rebrand of the wrapped assets:

  • PLENTY - wUSDC LP
  • PLENTY - wBUSD LP
  • PLENTY - wUSDT LP
  • PLENTY - wDAI LP
  • PLENTY - wWBTC LP
  • PLENTY - wWETH LP
  • PLENTY - wLINK LP
  • PLENTY - wMATIC LP

The goal is to attract liquidity in trading pairs compatible with the new Plenty Network before launch. Trading pairs that are expected to attract liquidity, volume and emissions after relaunch:

Flat curve AMM farms:

  • USDT.e - USDC.e LP
  • DAI.e - USDC.e LP
  • kUSD - USDC.e LP
  • uUSD - USDC.e LP
  • USDtz - USDC.e LP
  • ETHtz - WETH.e LP
  • tzBTC - WBTC.e LP
  • EURL - agEUR.e
  • TEZ - CTEZ LP

Regular curve AMM farms:

  • USDC.e - CTEZ LP
  • WBTC.e - CTEZ LP
  • WETH.e - CTEZ LP
  • LINK.e - CTEZ LP
  • MATIC.e - CTEZ LP
  • DOGA - CTEZ LP
  • EURL - USDC.e LP

These liquidity pools will be compatible with the new Plenty Network. This means that before the relaunch of Plenty the trading fees accumulate in the liquidity pool. After relaunch trading fees will be added to the attached gauges and are allocated to vePLY NFT voters.

Besides adding new farms we also propose to reduce the reward rates for the following farms:

  • tzBTC - PLENTY LP
  • USDtz - PLENTY LP
  • kUSD - PLENTY LP
  • uUSD - PLENTY LP
  • hDAO - PLENTY LP

And increase the reward rate for:

  • PLENTY - CTEZ LP
  • xPLENTY

Specification

Deploy Plenty Network compatible liquidity pools and temporary farms. View the proposed reward rates below.

Vote

To be eligible to vote, a user must hold xPLENTY at the time of the deployment of the Plenty Improvement Proposal (PIP).

Execution

The proposal will be implemented when the wAsset rebrand takes place.