PIP 20: Week 2 Incentive programs

Week 2 distribution:

Given the successful farming recorded in the 1st week of PieDAO’s incentive season, we are glad to announce for week 2 the distribution of 150k DOUGH among all Liquidity Providers on multiple pools.

The following incentive programs will be launched on week 2, starting on Saturday, October 10th:
Screen Shot 2020-10-09 at 16.27.31

Improvements vs Week 1:
Starting with the DEFI+L/ETH Balancer pool, we’ll be introducing as new staking contract the token-geyser developed by Ampleforth. This seems very promising in ensuring a better alignment of LPs interests to PieDAO’s long-term goals, through the computation of rewards factoring in both the liquidity and the staking time of each position, with the introduction of a multiplier incentivizing long-term liquidity providers.

While there are no hard lockups for staking, there is a concrete benefit to:

  1. keeping your staked position longer, since that contributes to the definition of a higher multiplier assigned to your staking position, linearly spanning from 1x up to a max of 3x after 8 weeks of staking;
  2. staking right from the beginning of the incentive program, being each staking position valued as the product of the amount of liquidity provided multiplied by the staking time, as per the example below
Alice_token_time = 10 tokens * 1 days = 10 
Bob_token_time = 5 * tokens * 3 days = 15

Global_staking_token_time = (Alice_token_time) + (Bob_token_time) = 25 token_days
Alice owns (10 / 25) = 40% of rewards
Bob owns (15 / 25) = 60% of rewards

Reached validation of this staking contract with DEFI+L, we’d plan to progressively extend the same also to the DOUGH/ETH pools starting from week 3 on!