Thread by @ProtoFiProtocol

#ProtoFi changed all the Mulitpliers as specified in the last proposal as the PIP-05 linked below has been approved with 99.97% of positive votes. 🧐

snapshot.org/#/protofi.eth/…

Below a bit of insight about what these changes will bring📈

Attention: Thread for Giga 🧠 only 🤓
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The weight we gave to stable pools in the beginning of the protocol was the result of days of studying and homeworks.

We used to give much higher emissions to stables pools than non-stables pools ( amongst the Fusion pairs )

This was contrary to what other DEXs generally do, since we were focused on increasing the #Fission #Treasury by means of deposit fees.

The best way to reach this result was by incentivizing the stables pools more than the non-stables pools, despite the fact this could bring less efficiency in the TVL/(annualized swap fees) ratio.

We also planned in advance to eventually decrease the deposit fees to zero, according to our protocol definition.

We were well aware of the fact that keeping those deposit fees above zero once the protocol was more mature was unsustainable long-term due to decreased demand.

We are now reaching the maturity phase, and we are working, delivering new products and features, and making adjustments (like the one just made) with the aim of avoiding a declining phase.

There are 2 things to say here:

1) Some of you may say the declining phase has already started weeks ago, with the decrease of $PROTO. This is inaccurate, as there is no direct correlation between $PROTO's price and the #ProtoFi Life Cycle.

The productivity of the protocol is correlated with the money flow generation with respect to the daily $PROTO incentives. $PROTO's price is just a consequence, and has to be seen more as a monthly average than daily, due to the #DEFI inefficiency of small caps protocols.

2) We could have made this adjustment a bit sooner. We are probably slightly late (by 10 days, more or less, in our opinion).

And this could be seen as a mistake on our part, that was due to the fact we were focused on working on and delivering new features more than optimizing the Tokenomics given the current situation.

When we say current situation we mean:

1) The deposit fees were already set to zero for all the stables pairs, so it was very efficient to keep those incentives so high.

2) The fact that @SolidexFantom changed a lot of things due to their deep liquidity and very low swap fees.

The other famous DEXs like @Spirit_Swap @SpookySwap and @beethoven_x have not been affected directly, because their price increased considerably thanks to the veNFT they got airdropped, and consequently, their APRs also increased and balanced out the expected TVL outflow.

#Adapt or #Die