Summary
We propose to update Unitus Finance liquidity mining parameters based on feedbacks and suggestions from Unitus’ community.
Motivation
As Unitus Finance is still in its early stages, we deeply appreciate the feedback and suggestions from Unitus community regarding how we can enhance liquidity mining efficiency and promote the adoption of UTS and Unitus Finance within the broader DeFi ecosystem. Here are some of the proposed changes that we kindly request DF holders to consider and vote on:
Implementation of Mandatory BLP Threshold
It is proposed to implement a mandatory BLP threshold set at 1% of the combined value of the user’s deposit and staked iUSX, with the percentage increasing as more emission enters circulation.
Mandatory BLP Threshold = 1% of the user’s combined deposit and staked iUSX in USD
Starting at 1%, this threshold ensures that users are eligible for UTS emission on both their deposits and borrowings, provided they supply a minimum of 1% of their combined deposit and staked iUSX in BLP value (either UTS/DF or UTS/USX).
For example, if a user deposits 1,000 USDC and stakes 1,000 iUSX, they must stake BLP equivalent to $20 in dollar value to be eligible for UTS emission.
- USDC LM Weighting: 1,000 + 20 * 10 for UTS/DF (or 1,000 + 20*5 for UTS/USX)
- iUSX LM Weighting: 1,000 + 20 * 10 for UTS/DF (or 1,000 + 20*5 for UTS/USX)
Creation of iUSX Staking Market for UTS Emission
It is proposed to introduce iUSX staking as a means to address inefficiencies arising from excessive borrowing while encouraging more USX minting through the LSR. This suggestion entails allocating more emission to the iUSX staking market.
iUSX staking must also meet a 1% threshold to be eligible for UTS emission. For example, if a user stakes 1,000 USX, he/she must stake an equivalent of 10 USX in BLP to be eligible for UTS rewards.
As a reminder, the user’s deposit and staked iUSX will be combined to calculate the required BLP value for UTS emission eligibility.
Reallocation of UTS Emission
It is proposed to reallocate a greater portion of UTS emission from the USX borrow/lending sector to the iUSX staking sector.
Adjustment of Supply/Borrow Allocation
It is also proposed to adjust the Supply/Borrow allocation from the current 70%/30% to 80%/20%.
Implementation
We will implement these changes if approved by DF holders.