A Data-driven Farming Approach, Updated

Nov 15

Back in August, we began implementing a data-driven policy for LP farming rates. Since then, the policy has resulted in feedback from our community. Among this feedback, we’ve recognized a couple of phenomenons:

Pools have to meet a minimum TVL to generate farming rewards. When this required number is much bigger than the current TVL, most LPs will un-stake instead of depositing, since they can’t turn the tide single-handedly. Shoutout to @Finion78 who brought this to our attention!
Popular pools should be favored with more farming rewards to ensure their liquidity and quality of performance. On the other hand, pools with low TVL/volume should stop receiving rewards until a better product solution is reached.

A properly managed liquidity pool is key to the success of every AMM-based DEX, and Integral is no exception. Although liquidity barely affects our capability to serve trades with nearly 0 price impact, it does determine the quantity of trade we can process. Also, with the upcoming OTC product launch, we believe it’s a good time to concentrate our resources on premium pools and help them grow faster.

In consideration of these items, we plan to make the following changes to our current farming system:

The TVL and pool ratio requirement for each pool to generate rewards will be removed.
Reward emissions from DAI-USDC, DAI-USDT, USDC-USDT and LINK-ETH pools will be paused. Rewards that were previously allocated to these pools will be applied to other pools, leaving the weekly ITGR emission unchanged.

These changes will be effective immediately, resulting the following reward distribution plan:

Total weekly ITGR emission: 158,657 (0.053% of the max supply)
wBTC-ETH: 25% of weekly ITGR emission (up from 9.9%)
USDC-ETH: 40% of weekly ITGR emission (up from 21%)
USDT-ETH: 25% of weekly ITGR emission (up from 13%)
DAI-ETH: 10% of weekly ITGR emission (down from 19%)

We are extremely grateful to all of the community members who have offered their insights on this topic. If you have more feedback and suggestions, please do not hesitate to reach out via Twitter, Discord, or reply if you’re reading this via email.

If you would like to help Integral grow faster, the most important thing you can do is refer to us a great designer. Currently we’re looking to hire a Design Lead to assist with branding and content creation. Any assistance on sourcing the best possible candidates for this position would be greatly appreciated. If your candidate referral is eventually hired for this role, we’ll gladly send you 5,000 ITGR as a reward!