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PICKLE farming proposal that will make PICKLE go up.
I'm concerned about the USDC farm getting 19% of PICKLE emissions. PICKLE token emissions are supposed to facilitate growth of the protocol. Pickle protocol will grow when profitable farms increase TVL. Profitable farms are for example ALCX-ETH and FEI-TRIBE where the jars earn 200% and 160% APY. Pickle gets 20% of the rewards and incentivizes farmers with PICKLE emissions. Unprofitable farm is the USDC farm. It earns 5.3% APY and awards farmers with 10-25% APY PICKLE emissions. Pickle protocol gets 20% of 5.3% = 1.1% APY and pays farmers 10-25% rewards. In other words, Pickle protocol loses 9-24% yearly on every dollar in USDC farm. I view this as counterproductive and parasitic. Shifting PICKLE emission incentives from low APY farms to high APY farms will increase protocol revenues. It will make 20% protocol fee matter more. The 20% protocol fee doesnt earn almost anything when the base APY is 5%. It earns a lot when the base APY is 200%. Sample maths: ALCX jar with 200% APY earns 20%*200%=40% APY for the Pickle protocol. Pickle protocol currently awards ALCX farmers 6-15% APY in the form of PICKLE emissions. USDC jar with 5.3% APY earns 20%*5.3%=1.1% APY for the Pickle protocol. Pickle protocol currently awards USDC farmers 10-25% APY in the form of PICKLE emissions. It's a crime that we reward USDC farm more than we rewards the ALCX farm. I don't have a magic bullet but I have a good proposal that I would like to be put to vote by DILL holders. Change in PICKLE token emissions: if: jar earns <10% APY on average for 2 weeks (this could be increased to <20% APY in the future) then: implement a 5% cap on total PICKLE emissions to that jar/farm (this could go down to 3% in the future) That would mean that the USDC farm would be capped at 5% and would not earn 19% of total PICKLE emissions.
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