End all farming rewards

@ vitalsine you aren’t even providing you liquidity on 1inch you have you tokens on sushi swap, so if your aggregator is paying you rewards it’s in $Uni and not 1inch. You haven’t lost 100% of your 1inch you are only -28.34464827387% [ 1.32 - 1.86|/((1.32 + 1.86)/2) = 0.54/1.59 = 0.33962264150943 = 33.962264150943% ]

, while you have a 40.909090909091% increase in Eth [ 1384.60 - 992.14|/((1384.60 + 992.14)/2) = 392.46/1188.37 = 0.33025067950218 = 33.025067950218% ]
Defi is literally making you money and you don’t realize it as eth is up o~120% in the last 30 days and 1inch is up ~62% and thats why you are suffering impermanent loss on staking the pair, but you are actually up as your have 33% more Eth and it’s value is up 120%. you are actually making out quite well and are focusing on the wrong metric.
another reason you are losing 1inch is that your LP is on a DEX where people are mainly swapping eth for 1inch. so your 1inch is decreasing in amount directly proportional to your percentage of the pool those swaps are being pulled from.

this plan will not decrease impermanent loss. especially since the pair that is suggested to be the only one is such a high probability of suffering from it. Impermanent loss occurs because one coins value is so much higher than the other, and or greatly out paces the other in the pair. As ETh is doing to 1inch The only way to fight impermanent loss is too pick coins that are close in value and likely to move in similar fashion. ETH/1inch pair is literally a prime candidate for suffering the most impermanent loss, as Eth has the potential still to 10x way before 1inch does. getting rid of the other farming pairs isn’t going to decrease your chances of impermanent loss. this proposal has an extremely high probability of causing even more impermanent loss.

idk feels like due diligence wasn’t done before jumping into this investment vehicle, as impermanent loss and rug pulls are the two most likely to happen of negative consequences. This proposal is trying to reinvent the wheel with a square wheel. it’s literally going to bring about the exact thing the proposal claims to be trying to prevent (debasement of the 1inch tokens value ) because once LP moves away from 1inch the value of the token will drastically fall.

this proposal goes 180 degrees against the !inch business model. it’s trying to turn 1inch into Uniswap.
Aggregators are a 2nd layer to the Uniswap protocol that offer liquidity providers incentives to fund the project. Incentives this proposal is trying to kill.

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I don’t know why it shows on APY.Vision that my tokens are in UNI, but I provided LP through 1INCH. Minor oversight hah. I know I’ve only lost only 28% of my 1INCH in the pool, which is ~392 1INCH, but I’ve only farmed 115 1INCH. I know how impermanent loss works, it was expected. What I was proposing was that ETH-1INCH farm would receive more (x2, x3) the rewards of other pairs, to offest the IL. As you said, if no one provides 1INCH liquidity, the value falls… where is the incentive to continue to provide liquidity? Sure it is safer to farm a pair like wBTC-ETH, but that isn’t helping 1INCH.

For example; If I had held my 1INCH rather than providing liquidity, I would have been up 37% on what I initially put into the pool, not including Ethereum gains. Instead I am down 4% (my farmed 1INCH barely covers this). I understand that stuff like this can happen, I did my research on IL.

I still believe that people providing liquidity to ETH-1INCH should receive more farming rewards than other pairs, or like mentioned above, remove the other pairs from farming.

other pairs do help 1inch as they are:
A. LP used to facilitate swaps in-house helping to reduce gas fees
B. Farming stake the LP to help insure the most needed in-house pools are the ones with the most value staked

both of these actually help 1inch increase in value as they help insure the speed and lower fees that give 1inch the advantage of the other projects.

BlockquoteFor example; If I had held my 1INCH rather than providing liquidity, I would have been up 37% on what I initially put into the pool, not including Ethereum gains. Instead I am down 4% (my farmed 1INCH barely covers this). I understand that stuff like this can happen, I did my research on IL.

the lower return on LP of 1inch is to incentivize farming to be a longer play than just providing liquidity, also why the APYs are/can be so high ( some times ridiculously high when the amount in the farming pool is lower. this incentivize user to start farming, and also to move or add to farming pairs with less value staked) incentives to entice users to do everything in-house as apposed to on other projects

the due dilegence part was meant to be directed at this proposal, as it calls to end the incentives designed and proven to get users to do the things most needed to ensure the success of the project. So that’s my bad as i can see how you would feel it was directed at you

In favor of option 2

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  1. Maybe we should give the invention of the price impact fee at least a shot?
    Immediately killing all mining rewards will prohibit 1INCH from actually trying to gather the data and demonstrate the 1INCH liquidity pools are a better option for liquidity providers compared to SUSHI or UNISWAP.

Have you read any research about the profitability of pools?
I asume that 80% of liquidity pools actually have a negative return. Happy to be proven wrong.

With option 2, we incentivize the 1inch/eth pool and still run other pools. (UNI has no incentives right now and highest TVL of any DEX). So LPs will come if the tech is there.

Looks like everyone is for option 2, so opening STAGE 2 - End all farming rewards

I believe most of the points in your list should be proved by real numbers. Did you calculated how big is AMM governance rewards comparing to Aggregation rewards? But how this would be changed if 1LP AMM would grow 10x in TVL? Please provide something we could rely on before making such critical decisions.

I assume you are k06a from the team, not sure but if you are, welcome :slight_smile:

No, I don’t have the exact numbers and would be happy to have my assumptions proven wrong by the team.

What if it goes -50%? I don’t think making wild 10x assumptions is a good way to make governance decisions.

I am hoping the team members can join in and together we can get more accurate numbers and make an informed decision. Our goals are aligned :slight_smile:

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i believe that farm rewards or any kind of reward for people who invest in 1inch should be split into payments that are sent out periodically… so if you invest in 1inch longer, you get more rewards in the long run… making it virtually impossible for people to leave because if they do, they miss out on the rewards they will be receiving in the long run…this way only the rewards received can be sold, and not the entire staked amount…

ie…

if I have 20k usd and i invest into some new farming option (say, the new opium farming) and i start collecting these rewards and i decide to unstake and go sell… in this case, i would lose all future rewards and miss out on being able to simply sell extra rewards while keeping original 20k invested in stake/farming…

if they make it a long term airdrop or whatever you wanna call it, they can ensure that people stick around for the rewards and dont end up abandoning the project because the “airdrop is over”…

am i making sense???

make the rewards a periodic reward system, and let all users know that the longer they stay in, the longer they will be receiving some kind of reward, also, have a list of ways to earn rewards by becoming part of the 1inch ecosystem (some point based system, perhaps)… So, instead of selling all staked positions and received rewards, people can simply sell (if they want to) their rewards received (long as they keep the original amount invested), knowing that more is coming… this will minimize people who sell all their positions and exit 1inch…shouldn’t it?

How about introducing boost to farming rewards by locking your 1inch tokens in governance module? Or locking your liquidity in pools for a specific period of time?

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i agree with locking but the thing is, locking can hurt people if they end up having emergencies and need their locked money… i am fully invested into crypto, after having 21k usd stolen from me (see profile info) so i am always investing with 100% of my money… i think that people should have warning messages when trying to unstake ( “You will forfeit future rewards to your fellow 1incher’s, are you sure you want to miss out?” Unstake) lol. I believe that the locked option might be good, long as there is an option to unlock and lose a certain amount of tokens in the process… So lets say i choose to unlock or unstake my 20k 1inch prematurely… i accept to forfeit 10% of my tokens as a penalty… that would be cool… making people who come in to abuse the system, pay the rest of us for doing so… who agrees?

What you’re talking about is very similar to how Opium does their drOpium rewards. I think it is a great model and something we should consider.

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the lower return on LP of 1inch is to incentivize farming to be a longer play than just providing liquidity, also why the APYs are/can be so high ( some times ridiculously high when the amount in the farming pool is lower. this incentivize user to start farming, and also to move or add to farming pairs with less value staked) incentives to entice users to do everything in-house as apposed to on other projects

I hear what you’re saying and agree, but when the farms only run for 1 month, how could it be a long term play? You have to realize the IL when you exit the pool. Feb 8 rewards end for v1.1 farms, no? If Ethereum doesn’t pump to high hell by then, we are screwed haha.

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Where did you read this info?

When they announced 1.1 farms they said it would be for 1 month, Jan 7 - Feb 8… here is a random link to an article on it. 1inch Launches New Liquidity Mining Program and Releases Liquidity Protocol 1.1 • CryptoMode

Looks like we didn’t even make it until the 8th… what’s up with that? Ugh…

4 weeks from Jan 9 would be Feb 6 (00:00 UTC) which is what it ran, isn’t it?

How are the farming promotion rewards distributed?

Yeah that makes farming a loss to the pair holders