A shift from PLENTY-based liquidity to ctez-based liquidity. Alongside this shift, a new way of allocating rewards is proposed based on percentages. Furthermore, a minting rate reduction from 30 PLENTY/block to 20 PLENTY/block is proposed.
If adopted, this proposal will implement a:
- Reorganization of the yield farms and substitution of PLENTY-based LP farms for ctez-based LP farms.
- Revision of the PLENTY reward distribution based on percentages, increase rewards for Ctez LPs.
- Update of the PLENTY token smart contract to reflect the new minting rate of 20 PLENTY/block.
When the Plenty token-to-token AMM was launched, there was no suitable tokenized tez available in the Tezos DeFi ecosystem. As an alternative, PLENTY was used to pair tokens on the AMM. Since the introduction of Ctez, it has become possible to provide liquidity to trading pairs of Tezos tokens that are paired to ctez, a collateralized version of tez. Hence due to limitations of the native tez token it is not possible to use tez directly for all DeFi purposes. Thus, Ctez can be considered similar to the native tez token with improved scalability.
As Ctez matures and opens up new DeFi possibilities, and as we notice the success of wrapped and tokenized forms of native assets in other DeFi projects (e.g., traderjoexyz.com), we believe it is essential to revize the liquidity pools of Plenty accordingly.
Currently, it is challenging to attract new liquidity to Plenty, with most of the incentives being added to PLENTY-based LP farms. We believe that the prioritization of ctez in trading pairs on the yield farms will substantially increase the usability of Plenty and reduce the burden to attract new users of the platform. By incentivising ctez, the liquidity and TVL of the protocol can grow, even when the price of the PLENTY token doesn’t follow.
Ctez, a collateralized version of tez, is an asset that is more suitable for traders compared to PLENTY. Furthermore, by facilitating traders the revenue of the protocol will increase for xPLENTY holders.
By introducing percentages, the different rates for each farm become easier to interpret. More mint reductions and reward changes are a certainty in this fast moving industry. By using a percentage-based approach, this becomes an easier process for users and the dev team.
By reducing inflation, the sell pressure of the PLENTY token is reduced. Reducing the PLENTY that’s distributed to farms might have the short-term effect of lowering farm APR. However, in the long term, the goal is to keep supply low and demand high. So if the token price rises due to a lower supply, this will help sustain a decent APR.
- Update the storage of tokensPerBlock to 20000000000000000000
- Update farm rates based on percentages.
- Yes, I support this proposal
- No, I’m against this proposal