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
What do you think?