More rewards for liquidity providers

Proposal discussion
#1

Hi I would like to propose moving more rewards from markets to liquidity providers. 1) with the recent price of omm $2 to $.9 it’s been really bad for the liquidity providers
2) many people are already borrowing to earn liquidity rewards

Attached photo shows what the current breakdown is

image
image828×1792 46.5 KB

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#2

P.S exact amount can be figured out later but right now I feel that at least 20k from markets should go to liquidity providers ( I am assuming at least half of the people who borrow are doing it to earn more ohm with it )

#3

Not a good idea in my opinion.

  1. LP APY are still pretty high. You can’t expect the high launch APY’s to last. Look at the APY on the Balanced LP pairs for reference or many other DeFi platforms.

  2. The market needs OMM incentives because there currently are no other use cases within the ecosystem for USDS and iUSDC. Borrow demand might collapse. Without borrowers there will be no interest to be paid to suppliers. Once there is another use case which requires USDS and/or iUSDC to drive demand, then you can consider lowering the OMM incentives.

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