Created this topic to discuss on the new feature of Ref Finance.
Ref Finance just launched a farm for Ref/Near with a reward of 10000 Near per week, APR 181% (at the time of writing)
If we compare Ref farming with other emerging DEX such as Quickswap, we can see that the APR is quite low. Please keep in mind that, Ref Sales still not end yet, and many still not stake their Ref into the Pool. The APR will drop quickly to 20-30% soon.
APR low means we will not able to attract new users to bridge their token from others chain. For a very first farm like this we will need a big bang. And I don’t see it here.
With a attractive APR, we can even encourage new users who not participant on the sales to swap their Near for Ref, then stake again to get profit.
With this current APR (soon will drop significantly) I don’t foresee that we will have a large volume of swamping. Low volume of swapping => low transaction fee => less incentives
One interesting thing I noticed is that the reward is paid by NEAR. That is a good point as I believe that the team has a long-term commitment and strong partnership with NEAR protocol. However, this approach is not allow us to give a Attractive APR. I would rather suggest to regard in Ref, as we do have a large portion of Ref for farming incentive.
I guess sooner or later the regard will be paid in Ref, however, as mentioned, we need a big bag to attract lots of lost of new users.
Above is my humble thought and it may be wrong. Happy to discuss.