BarnBridge

The deployment of SMART Yield on Polygon and its integration with Aave presents an opportunity to pilot a new incentive mechanism on the eve of mainnet SMART Yield rewards coming to a close. The topic has previously been discussed here: https://forum.barnbridge.com/t/implementing-kpi-options-for-polygon-smart-yield/385/3

This Signal vote is to assess the community support for a KPI (Key Performance Indicator) Options program with the following hallmarks, which were informed by community discussion:

• Strike date of October 31st, 2021
• 100,000 BOND set aside for potential distribution
• The function for the KPI would be: Polygon AAVE TVL * (Polygon Senior TVL / Polygon Junior TVL) with bounds at 10M and 100M for the KPI output, and bounds of .5 and 1.5 for the TVL ratio modifier
• Linear vesting of BOND rewards over 3 months following the conclusion of the program

10,000 KPI Options would be minted in total, to be distributed as follows via biweekly randomized snapshots:

• 5,000 to secondary liquidity providers of junior tokens
• 2,000 to senior depositors in Polygon SMART Yield
• 1,500 to addresses that have a mainnet senior SMART Yield deposit on August 1st, 2021
• 1,000 to addresses that have voted in the BarnBridge DAO 500 to addresses that vote in favor of AIP-23 (i.e. listing BOND on AAVE)

Regarding the 5,000 option tokens to be distributed to junior side participants, these would follow a decaying emission schedule such that initial weeks will give out more than preceding weeks. The 2,000 in senior tokens will mirror this process, with latter weeks giving out more than preceding ones. In both cases, users who remain in the pools week after week will be rewarded, with up to a 100% boost on their pro rata share of rewards after 9 successive weeks (i.e. 1/8th boost every week, starting with a depositor’s second week).

The point of this snapshot vote is to confirm the seemingly unanimous support for the program reflected in positive forum and Discord conversation. There is still room for changes and improvements - if you find that you agree with the program but would alter certain aspects, feel free to make your opinion known to the community. The final terms of the program would be codified via an official blog post.