In the coming days there'll be a change in the cLQDR receiver contract (the one that converts all the different tokens from rewa
13 Jul 2022, 12:46
In the coming days there'll be a change in the cLQDR receiver contract (the one that converts all the different tokens from rewards into cLQDR and then burns the cLQDR), this change is to update the way that the 12.5% fee is distributed.
Current setup:
The entire fee is sent to the veGRO Reward Distributor.
New setup:
A maximum of 50 cLQDR per day is sent to the veGRO Reward Distributor, any excess cLQDR from the fee will be used to increase the liquidity of PiC.
Example:
-500 cLQDR is bought back with rewards
-437.5 cLQDR is burnt (increases price per share)
-50 cLQDR sent to the veGRO Reward Distributor
-12.5 cLQDR used to add liquidity to PiC
Effects of this change:
-cLQDR rewards for veGRO holders will continue growing steadily (as 50 cLQDR is worth more LQDR after each buyback)
-Growth in the xLQDR amount held by cLQDR will snowball the amount of liquidity added to PiC overtime
-For cLQDR holders the fee is the same one but they'll benefit with increased liquidity depth in the long run
This change won't increase the liquidity of PiC in the short term by a lot, it's a 6-12 month plan to overtime own a larger % of PiC's liquidity.