Hey everyone! I’d love to suggest a proposal for the reduction of $SPELL emissions of the LP providers on sushi swap.
Currently 13.1% of the weekly $SPELL emitted is utilized to incentivise liquidity providers and sits around $1,3ml. Any discovered Uni v3 concentrated liquidity is far better and way less expensive than Uni v2 (Sushi’s current system for ETH-SPELL LP).
What should we do/How we can reduce the emissions?
Reduction of emissions from 13.1% to 10% and splitting the remainder of the Uni v3 portion to an Arrakis Finance Vault and sushi LP split with will be under team decision, i would like also have a reduction over time from emission with a weekly reduction and abra DAO will choice one of the three path i will add on the proposal team will also power to change it in case of necessity, proposal is maded for reduce emission but thats could also effect price in a negative way.
Why incentivise Sushi and Uniswap together?
Uniswap is by far the best AMM but it has some weaknesses, if the market moves in a strong direction up or down, Arrakis could take some time before managing the liquidity in the range, making it impossible for someone to buy or sell SPELL, so we need still need Uni v2 to protect against this possibility.
Some data in relation to the proposal:
-89.220.763 SPELL emitted weekly (100% of the emission)
-11.687.919 SPELL emitted for Incentivizing Liquidity
(13,1% of the emission)
-2.765.843 SPELL reduction after the first week
(3,1% of the emission)