[Farm ] NEAT<>NEAR protocol fee refund by $REF farming

Farms
1

NEAT is the first inscription project built on NEAR, notable for its one-key mint function, decentralized nature, low transaction fees, and user-friendly interface. The project boasts a total supply of 42 million NEAT. During the minting process, NEAR’s gas fees soared to an unprecedented level, reaching 7.36 times their highest historical value. NEAT also achieved a remarkable feat by minting out in just five days.

NEAT Key Figures:

  • Number of Addresses: Approximately 26,000, with around 80% being new signups. This indicates the potential to bring at least 20,000 new users to the Ref platform.
  • Uptime 24-Hour Volume: Around $3M, ranking as the top pool, and achieving 5 times more volume than the second-ranked pool.
  • Live 24-Hour Swap Fee: Totaling $60K, with $48K going to Liquidity Providers (LPs) and $12K as the Protocol fee.

Proposal for Enhancing Trading Experience on Ref:

To sustain and enhance NEAT’s trading experience on Ref, we propose the following mechanism:

  • Periodic Buyback and Incentivization: Utilize the Protocol fee generated by the NEAT<>NEAR pool to periodically buy back $REF. This strategy is aimed at incentivizing LPs of the NEAT<>NEAR pool.
  • Bi-Weekly Implementation: Every two weeks, the Protocol fee from the NEAT<>NEAR pool will be calculated, and an equivalent amount of $REF will be purchased. This $REF will be linearly distributed to LPs participating in the Farm over the following two weeks.

This proposal is designed to:

  • Encourage deeper engagement and participation from current and potential LPs in the NEAT<>NEAR pool.
  • Strengthen the liquidity and overall trading dynamics of NEAT on the Ref platform.
  • Attract new users to Ref, leveraging NEAT’s extensive user base for broader ecosystem growth.

We believe this proposal will enhance the NEAT<>NEAR pool’s performance and contribute significantly to the vitality and liquidity of the entire Ref ecosystem. We eagerly anticipate the community’s input and support to realize these initiatives for a more dynamic and prosperous trading environment.

4 Likes
2

Thanks for your proposal,

First, congratulations on your achievements so far.

Second, I welcome the approach of asking for REF rewards in relation to the volume and fees that the pool in question is actually generating. There’s a couple of things to take into account here:

  • Protocol fees on REF are used to buy back REF and reward xREF stakers.
  • Protocol fees collection and subsequent buyback are currently done on a quarterly basis.
  • Volume can be very volatile and it is hard to project into the future. Farms benefit from consistent rewards users can be drawn to.

This means that it may not be possible to implement for proposal exactly as presented (direct relationship between the REF bought back and the rewards, timeframe for buybacks).

However, I do believe it would be possible to do the calculations you’ve mentioned above and allocate an appropriate amount of REF from the REF Treasury to the NEAR <> NEAR pool.

I’ll have a conversation with my fellow community Dao colleagues and should be updating here soon.

2 Likes
3

Thanks for the response, here is a adjusted proposal based on your comment:

  •   Overview of NEAT<>NEAR Pool Performance:
    • Duration: Active from December 14 to January 9, totaling 27 days.
    • Trading Volume: Achieved a substantial volume of $12.92 million.
      • Fee Generation: Generated $258.4k in fees.
      • Distribution: $206.7k was awarded to Liquidity Providers (LPs), and $51.68k was allocated as Ref’s protocol fee.
  •   Farming Rewards and Phases:
    • Total Rewards: Applied for 200,000 $REF, valued at approximately $47k (based on current $REF price).
      • Distribution Schedule: Rewards were distributed in four phases, each consisting of 40,000 $REF.
      • Phase 1: Second half of January 2024.
      • Phase 2: First half of February 2024.
      • Phase 3: Second half of February 2024.
      • Phase 4: First half of March 2024.
  •   Impact on REF and Future Prospects:
    • Contribution: NEAT<>NEAR has been the most significant pool contributing to REF since its launch.
    • Expectation: Anticipating that the REF incentive will enhance NEAT’s liquidity and increase agreement revenue for REF.
4

Hi Ref team,

Based on the feedback provided by your DAO member during our meeting, here is the revised version of the proposal:

  • TVL: $500,000
  • APR: ~20%
  • Monthly Budget: US$8,300 (36,800 REF tokens)
  • Duration: 2 months (with bi-weekly review)