BIP #1 - $BPRO Tokenomics change: Reward Liquidity Providers on Sushiswap and Uniswap

Simple Summary

The goal of this proposal is to enable better liquidity for the BPRO token as it would arguably attract new users to B.Protocol.

Abstract

This proposal aims to incentivize BPRO liquidity via a BPRO-ETH Sushiswap and Uniswap pools. This proposal suggests that 50% of the current BPRO rewards that are being distributed to users of B.Protocol as part of the Liquidity Mining Program, will be directed towards Liquidity Providers on the Sushiswap and Uniswap BPRO-ETH pools. This change will get into effect once it passes the governance vote on Snapshot, (roughly in 5 days) , and will run until the end of the current Liquidity Mining Program at block 14085231 (approximately 2 months).

Motivation

The current liquidity of BPRO on Uniswap is relatively low and diminishing. As a result, the main goal of the liquidity mining program that was voted by the DAO, is not met - new users are joining in very low numbers as the BPRO rewards can’t be utilized due to the low liquidity.

In addition, new players who would like to participate in the protocol governance, can’t purchase tokens on the market due to this very low liquidity.

As the current Liquidity Mining Program runs for exactly a month now, this proposal main goal is to re-adjust the rewards on BPRO in a way that will be better aligned with all stakeholders of the protocol (Users and Token Holders alike) in order to bring new traction both to the protocol and to the token itself as they now go hand in hand.

Specification

Overview

Incentivizing Sushiswap and Uniswap V2 BPRO-ETH liquidity providers with BPRO will increase liquidity for the BPRO-ETH pair and enable new (and existing) players to buy BPRO tokens.

Rationale

DEX choice: Though initially, and over Discord, the discussion was around Sushiswap only, Uniswap is still the most popular DEX and holds the current liquidity of BPRO. So though Sushiswap may have some incentive mechanisms that are missing in Uniswap, this proposal suggests rewarding LPs on both DEXes at this stage.

Rewards: The current Liquidity Mining Program distributes every block roughly 0.14 BPRO to the users of B.Protocol. This proposal suggests to re-adjust this distribution in a way that 50% (0.07 BPRO) will be distributed as rewards to SLP holders of the BPRO-ETH Sushiswap and Uniswap V2 pools. The remaining 50% (0.07 BPRO) will be distributed to B.Protocol users in each block under the same conditions of the current Liquidity Mining Program.

Duration: This new Sushiswap/Uniswap BPRO-ETH SLP/LP holders rewards will become part of the current Liquidity Mining Program and will end at the same time as it was voted upon initially by the DAO by the end of July 2021 at block 14085231.

Technical Specification

At every block the ETH-BPRO SLP holders on Sushi, and LP holders on Uniswap will be recorded. Further at every block it will be recorded upon how many BPRO tokens each user controls (i.e., eligible to withdraw from Sushi/Uniswap).

A total amount of 0.07 BPRO will be accrued, in every block, to the entire holders, proportional to their BPRO holdings at Uniswap and Sushi.

The accumulated BPRO will be distributed to the users once the current program ends (at block 14085231).

This proposal is submitted after quite a long discussion that took place on Discord and in another thread in this forum.

As this is the first BIP (BProtocol Improvement Proposal), I took the freedom and took a template from another project (PoolTogether) to keep things in order.

I will open up a Snapshot vote soon and hope this could get the team approval and to pass the DAO vote.

@yaron Please share your thoughts on this proposal if possible.

Just created the snapshot for your proposal. You can find it here → Snapshot

one technical aspect to note is that once deposited on sushi/uniswap the community member will not be able to vote on snapshot.
However, this is fixable, and if this is included in the proposal (and if the community approves) it will be possible to include staked tokens at the future snapshot votes.

  1. Is liquidity real reason why people cant purchase tokens?
  2. BPRO distribution rewards are intended for users (or should be) who take the risk inside protocol, and if we cut rewards - what effect is expected?
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