Hey mates, I am considering modifying the distribution model of WING.
Currently, WING incentive is calculated and distributed to each asset dynamically in real time according to the valid borrow amount, we call it the Competitive Distribution Model. Here are the details.
I suggested removing the Competitive Distribution Model, change it to a fixed ratio of WING based on assets. The adjustment frequency is once every month.
The new Distribution Model logics is below:
Total WING will firstly be distributed according to the valid borrowed amount in each pool. The ratio of WING distributed to each pool will be adjusted every month. (same as before)
Supply, Borrow and Insurance pool distribution ratio of each Flash Pool still remains 45%: 45%: 10%. (same as before)
After that, the WING incentive is distributed to each asset according to the fixed proportion distribution model. That is, the WING incentive of each asset no longer changes with the valid borrowed amount and the utilization of the asset. The WING distribution proportion of each asset is adjusted once a month.
The fixed proportion distribution model that needs to be adjusted this time is different from the previous competitive model. In the competitive model, the proportion of WING distributed to each asset changes in real time, mainly based on the valid borrowed amount and the utilization of each asset. By the formula to calculate the WING distribution proportion, and the proportion changes with the user’s Supply and Borrow operations. In the new fixed-proportion distribution model, the Wing core team will set a constant WING distribution proportion for each asset in each Flash Pool, and adjust it once a month on a fixed date. This adjustment only involves the distribution of WING among the assets in a single pool, and does not involve the distribution of WING among all pools and the lending rate model of each asset.
There are three advantages to doing this:
The calculation of the contract is reduced, thereby reducing the Gas consumed greatly, which will make Wing more attractive in the market;
It can support more assets to be added to Wing Flash Pool with no Gas Consumed increasing;
There will be more flexibility for future development and cooperation
Instead of refresh at every supply/borrow tx which consuming gas. Can we just make it have a count down to refresh at the first transaction invoke contract everyday? Every month seem too long
Ethereum Pool transactions doesn’t consume gas recounting WING distribution. It can be recounted If necessary about once a week with the lowest weekend gas fee of less then 20 GWEI.
OKC Pool transactions consume a few cents.
By what factors will the core team determine the distribution proportion of assets? Within what boundaries and limits?
This change only affect BSC pool which we can implement contract auto refresh every 3 days. Less human interact less errors and more fair to defi space
Example: We can change to count down contract and keep distribution model + whenever newcome project, we can deduct 5-10% incentive from current pool and distribute to newly project with separate contract which set by wing team, after promote just bring back to current contract like all others
By what factors will the core team determine the distribution proportion of assets? Within what boundaries and limits? It’s good when changes are predictable and at least announced in advance.
If adjust it every day, fees won’t be much lower, and if we calculate it every day, it will consume manpower.
If we want to talk to more Token partners, we usually talk about rewards with them on a monthly basis.
Compound are also making changes. They may stop the distribution of COMP incentives in the future, and the newly added Token will also artificially adjust the COMP incentives.
Many new projects like Venus, Atlantis and DEXes like BabySwap also use fixed Token distribution rate. I think we should change.
Changing this fixed distribution rate can promote cooperation with more projects, and I think the benefits outweigh the risks.
The main reference is also the utilization and the valid borrowed amount. Besides, there will be new Token benefits when a cooperative Token or a new Token is added. This is the plan now.
Whilst I’m not against a fixed proportion distribution model, there are valid issues with what’s proposed.
It’s less decentralized. Currently, the distribution is clear, predictable and can not be controlled by an individual. This puts the power of distribution into the hands of a central agency.
It’s not transparent. Distribution is based on what?
To be honest, it was very interesting to study the current distribution algorithm, it is thoughtful, reasonable and beautiful.
Is it really necessary to radically change the entire algorithm? What if you don’t change the distribution for the core assets and somehow separate these two approaches for new tokens? There will be an opportunity to test and minimize the risk of this innovation
Yeah, this was my ideal when keep incentive model but change cycle to 3-7days and have new distribution contract set for newpool comming, after promote we can just sync it into our current model contract
Lastly: I would like a fully decentralized for wing instead need some human interact every 7days
Based on community’s feedback and suggestions, I have sorted out the relevant plans as follows:
For specific pools and tokens, such as new pools, new tokens or tokens with cooperative relationships, a fixed distribution ratio will be set in the voting, and the fixed distribution ratio will be implemented after launching;
After deducting the fixed distribution ratio, other WING incentives are distributed according to the existing Competitive Distribution Model, but the update cycle is changed from real-time refresh to every 7 days;
Step 1 Realized by voting and decided by the community; Step 2 Still distributed according to the proportion automatically calculated by the contract. Both of the above two steps maximize decentralization and reduce human intervention. And it can reduce the consumption of handling fees and meet the requirements of partners.
If you have other better plans, please feel free to give your plan in full. Thanks!