Balancer LP Staking Rewards

Proposals
1

Hi all,

We have a new reward program that will be live this week. This program will incentivize PERP token holders to provide liquidity to this 80/20 Balancer Share Pool.

We will start from 25,000 PERP token rewards per week and review it every two weeks. The rewards are shared by all the token holders who staked their Balancer Pool Token (BPT) to the Balancer LP staking contract. The foundation itself will not stake any BPT.

The BAL earned by the Balancer LP staking contract will be sold and buyback PERP. The purchased PERP will also be distributed as part of the rewards.

The program and website will start sometime this week, but we don’t have a specific time yet. The time will be announced soon.

Please let us know if you have any questions. Thanks.

3 Likes
2

A quick back of the napkin calculation:

25k[rewards] / 335k[PERP currently staked in BAL pool ] * 52 (weeks in a yr) = 388% APY + BAL rewards

3

How will you snapshot accounts for the reward calculations?

I’d recommend daily snapshots so that people don’t add to the pool just in time for the reward.

4

We use the similiar smart contract as most of every defi projects used (SNX, YFI…etc), in this case there won’t be any “snapshot”. The formula is

rewardPerToken = rewardPerTokenStored + (lastTimeRewardApplicable - lastUpdateTime)/totalSupply * rewardRate

which means every staker’s claimable reward will increase based on the ratio every block. I’m surprised I didn’t find any blog post to describe how it works in details, I hope someone can explain better than me

5

BTW, another quick calculation on the BAL rewards:

39193 [Anual BAL] / 52 [weeks per year] *21 [BAL price] / 1.62 [PERP price] = 9,770

We can add around 10k PERP on top of our weekly rewards.

1 Like
6

Hi. Will it only be on the PERP/USDC field? Will there be no such rewards on other pools (PERF/ETH)?

7

There are now more than 3.5 million PERP in the Balancer pool (instead of the 335k - with which the calculations were made). I think you should consider increasing the rewards for the first weeks…

8

It’s a good concern. One thing to note that around 3M out of that 3.5M is from the foundation, and the foundation won’t stake the LP tokens for rewards. That’s why I’m only using 335k for the calculation above.

1 Like
9

Good suggestions, Let’s run the 1st pool and see how it goes first.

10

Приветствую вас! Если у вас есть неплохо оформленная версия рус сайта, то полагаю перевести мое сообщение вы сможете. Хотел сказать что предложенное вами вознаграждение ничтожно мало по следующим двум причинам: первое - учитывая что цена на ваш токен стремительно валится и будет продолжать валиться, вы предлагаете доходность всего более 1%, в день (это не покроет убытков); второе - вознаграждение которое вы предлагаете рассчитано в расчете на 335К токенов которые уже в пуле. Таким образом все те сумасшедшие люди которые решат застекать токены, размоют и без того невидимую доходность . Единственный выход для тех людей которые уже запрыгнули в этот тонущий корабль, это смириться с минусом и лить ваш токен на перегонки. Надеюсь вразумлю РУ комьюнити этим сообщением. Передавайте привет чертополоху дяде Сереже!