I agree with Starny here, it’s true that we need to be careful about the liquidity mining, however these are extreme measures discussed: -50% on Curve, -40% on Paladin and -100% on APWine with an token swap and -100% for Uni.
Tbh not sure about the Uni pool, maybe it’s worth it to focus on StkAave but there is around 300K$ in UNI on Paladin that might leave without LM. I agree 35% is important (even if this is related to the market dropping), maybe we could try to reduce to 5K/month first ? Unless if we dont mind loosing some UNI TVL for now, in which case we could stop it
About the Curve pool, the APR is also higher only because AAVE dropped from 160$ to 80$, however the liquidity on this pool is very important and needed, and I think removing 50% of the rewards to a pool that actually dropped 50% in value may not be the best move if we want to keep the current liquidity.
We might even want to consider increasing the liquidity considering the current slippage for ~10k$ worth of AAVE, in which case we shouldn’t reduce it at all but if the point is to reduce everything, starting from 35 or 30K instead of 40K as mentioned @Starny makes more sense imo.
About Paladin Lending, I agree that the growth has slowed and it’s mostly organic growth now, but we’re quite close of the 80K AAVE, and with the low price it should be easier to reach it, but by moving to 60K PAL/month, we might lose some of these deposits.
Iirc currently there is 100K PAL/month for 21% APR with 60K AAVE, so we could progressively lowering it and see how it goes, maybe 75K is a good start ?
About APWine, I agree about the token swap idea, and it make sense to not have both LM + vote to allocate more APW rewards on the pool, but a token swap needs to be voted by both DAOs and maybe split on several tranches to have average prices. It also depends of the amount to be swapped to consider how much votes would be redirected so how much APR etc.
For these reasons I believe we should wait for it to be voted and swapped to fully stop the LM, but we discussed on the last LM adjustment post to start with 15K PAL/month for 2 weeks before lowering it to 10K PAL if it doesn’t grow.
The LM started one month ago, I don’t have the exact numbers of tokens, but when the LM started, the pool was around 620K$, and it went up to 930K$ iirc, so there was more deposits since AAVE didn’t pump (even if we can argue that this might not be new users), then AAVE price /2, and since there is still 450K$ in the pool, there was probably almost no withdrawal.
So the APWine LM was reduced by 30% after two weeks even if the pool increased in token amount, so I think it should stay to 10K PAL / month until we have more information on the other possibilities such as the token swap.
Finally, fully agree about moving to hPAL rewards to reduce the selling pressure.
So to summarize, imo:
- Reduce UNI from 10K to 5K PAL/month if we want to keep UNI TVL or kill the LM if not
- Reduce Curve palStkAAVE from 40k to 35-30K PAL month instead of 20
- Reduce Paladin lending on stkAave from 100K to 75-70K PAL/month instead of 60
- Keep the LM to 10K on APW instead of 0 until the token swap considering it was already reduced from 15K to 10K two weeks ago and that it started one month ago.
- Move from PAL to hPAL rewards