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.
Nice proposal Luffy, here are some of my comments:
I agree that this APR right now is not attractive enough. But since we using $NEAR to reward that I don’t have anything to complain about when this is a good point to start.
Yep we definitely will need to distribute $REF token to the community, but I believe this is not a perfect time. Why?
Our products still have a lot of errors → need time to improve
The market is not ready for us to scale up, still in a dangerous zone
Defi Ecosystem in NEAR is not finished all their parts, lending?, asset management?, perpetual?, derivatives?.. What users will do when they entering the ecosystem? → release $REF right now will cause a huge sell pressure, at least wait for other projects to grow, and then we will take action
→ My suggestion is just slowing down, wait for the market and NEAR Ecosystem itself to react. After all, the land (NEAR) must go first, then following by the market (Ref Finance), banking (lending)…
The APR in farming is kind of different with general reward for AMM LP. Basically, the amount of reward and duration define the APR. Cause joining farming is lossless and quick (no freezing time when unstake), a more than 95% staking rate can be easily expected, leave the reward part the only factor of APR.
In other word, farming is like a flexible tool, can cooperate with marketing strategy smoothly, through releasing farms aimed at some farming token with well designed reward strategy.