The purpose of this proposal is to implement a method to prevent rewards flowing into incentivizing assets that are no longer valuable. Please note the proposal is strictly for assets on Fantom, but the votes will include SoulPower from both Fantom and Avalanche Network as this is a critical proposal.
The reasons for this are two-fold:
It does not make sense to reward assets that continue to lose value as Multichain has seemingly collapsed; and
In order to prevent further losses for existing liquidity providers who are farming SOUL with assets that continue to lose value each day that passes.
Please note: We must act swiftly to mitigate the damage, hence the proposal to cease reward for those pools that include Multichain assets immediately. It makes no sense to continue rewarding even a small amount for assets that are supported by an untrustworthy source.
Action Items (Table)
LP Assets
Action
SOUL-FTM
No Action
FTM-AVAX
Remove
FTM-BNB
Remove
SOUL-USDC
Remove
FTM-USDC
Remove
FTM-ETH
Remove
FTM-BTC
Remove
FTM-ETH
Remove
BTC-ETH
Remove
BTC-USDC
Remove
ETH-USDC
Remove
USDC-DAI
Remove
Actions and Considerations
End rewards for all of the pools marked for removal: this affects farms and bonds.
Identify alternative providers of tokens from a reliable bridge.
Swiftly act to proceed with incentivizing pools from new bridge providers to minimize reliance on a singular source.
Optimize rewards as our community selects which providers they trust most.
Investigate pools to incentivize that contain native assets on Fantom in order to maintain a functional exchange with a multiplicity of options and liquidity pools to choose from.
What will happen to bonds for lending market assets?
These are unaffected by the proposal. If anything, provided the proposal passes, those who have bonds for lent assets may expect a higher APR (all else held constant).
Will the rewards rate change?
No, this would require another proposal. That being said, we will do what we can to offset some of the lopsided benefits that will accrue leading to extremely high APRs. This includes adding new farms, new bonds, and moving some bonding emissions towards farms – this all depends on how the APRs are affected. Expect some volatility in the short term as a result.
What new pools will be added?
For farms, we will look into the assets that are not supported by Multichain, such as FTM-BNB and pairs that include FTM and Fantom-native projects, such as Surveyor DAO, for example.
Yeah, it’s a problem. Basically all but one of the farms are Multichain tokens.
If Multichain resolve the issue then they’re likely to recover and should probably be kept
If Multi don’t resolve it then those coins will probably go to zero and those farms will be worthless.
Based on what Michael Kong (Fantom Foundation CEO) is saying in the Fantom Telegram, he’s regularly in touch with Multichain an they say they’re working on it. However Multichain have said nothing at all themselves and Kong is a bit confused and unsure why they haven’t communicated. So maybe they’re sincere or talking shit and will disappear. From that little info I have, it’s so hard to predict.
But one thing I can decide is that I think Multichain have acted VERY badly throughout this by not communicating at all, thus leaving everyone involved in Fantom in a total mystery, thereby causing FUD and doing nothing to alleviate it. Not good. So I don’t want to support or contribute to them. I’d prefer to contribute to other, decent projects and people and the Fantom network as a whole, good native projects etc.
So there are a couple of possible actions I think we could take.
Do as Buns proposes.
Keep the existing farms but scale down their rewards to almost nothing. The reason being that if they recover, people in those farms will probably recover their value in time and meanwhile people can trade in them. It might benefit SOUL because I suspect more people will be selling Mutli coins than buying them so they’ll be buying SOUL.
Keep the existing farms but put them in the DeFarms section or Retire them. Essentially to put them somewhere so people can trade them if they like. Minimize or remove emissions rewards.
What is important is that people who don’t follow the SoulSwap forums etc. regularly can find their farm and get their money back at some point.
Leave farms as the are but create new ones with projects native to Fantom and non-multichain tokens, the intent being to contribute to a healthy Fantom ecosystem. Downside of this (and 2 and 3) is that emissions will be shared now by many farms and thus lower for individual farms)
I think I favour retiring the Multichain farms (could they be pulled out of retirement if Multi recovers?)
and supporting good Fantom projects and basic stuff like AVAX, BTC, ETH, BNB that are non-multichain minted tokens.
Difficult because as an exchange SoulSwap needs Either the coins people regularly want but also arguably niche coins that people want that can only be found on SoulSwap. We are in competition with other similar protocols - why should people trade with and use SoulSwap rather than elsewhere? Not a simple answer. Ideally a highly demanded service or thing that many people want that can only be found via SoulSwap. But what is that exactly?