After 8 weeks of Farming Set, we decided to propose some changes in LUA reward allocations to increase the volume and liquidity on LuaSwap. This is a replacement of our Farming Set initiative intended to bring long-term liquidity and volume as well as ensure the stability of our platform called Golden Field.
12 pools will be eligible to receive LUA that lasts for 4 weeks. Every week, the list is re-evaluated based on TVL (Total locked value) to ensure capital efficiency for the LuaSwap platform. The rewards for the pools are meant to bring new liquidity and reward current liquidity providers for specific pairs.
The new mechanism is Golden Field which will have the following changes:
- 4 fixed pools (LUA-USDC, TOMOE-LUA, TOMOE-ETH, LUA-ETH) 5 pools with the highest trading volume within 4 weeks of the Golden Field, and 3 community voting pools (excluding 4 fixed pools and 5 best performers).
- At the beginning of the new Golden Field, all of the pools have the same weight (x1)
- Every week around noon SGT Monday, we will collect data on TVL value of each pool to re-calculate Lua rewards based on the formula: Pool’s reward = TVL of each pool/total TVL of the Golden Field x 10 LUA (reward per block)
- A form for the community to suggest their favorite pools for the next rotation is created here, all suggestions are welcomed
- Among the pools suggested in the TomoChain thread, 9 pools will be put up for a Poll on LuaSwap’s Twitter. A total of 3 new pairs picked from the highest voting pair from each poll will be included in the Golden Field. The poll will be created around noon SGT Friday and last for 48 hours.
- Any pool/pair with less than 10,000USD in TVL will not be allowed to join Golden Field
- The code for the next Golden Field will be deployed on Monday with a 24-hour timelock. The new Golden Field will be activated every Tuesday.