We want to open a MIN Farm! [Proposed Template for Requests to have a new MIN Farm]

Proposals
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Background

The following Post aims to establish a set of Guidelines in order to qualify for a MIN Farm. Minswap is growing, and as such, many upcoming projects building in Cardano are interested in having a MIN Farm. This benefits both Minswap, which becomes the de facto place to trade new and promising tokens, and the projects as well, which can attract/bootstrap liquidity easier towards their native token.

However, MIN Yield Farming rewards ought to be allocated wisely, essentially, every MIN we spend on Yield Farming represents a cost to the protocol, and it should be allocated in such a way that it maximizes the revenue of the protocol (which means swap fees/volume) as well as TVL. Luckily, our Yield Farming system allows for the constant tweaking of Points, and as such Farms (especially new ones) ought to be regularly monitored to assure the MIN is being spent wisely.

Proposed Guidelines

1. The project that wants to apply for a Farm should to do a Proposal on the Minswap Forum. In this proposal, the following points have to be addressed:

1.1 Please describe your project. What is it doing to improve Cardano?
1.2 What does the Token do? How many holders does it currently have?
1.3. Why do you want a MIN Farm? How does the Minswap community benefit from offering a MIN Farm for your Token? Apart from the MIN Farm, will you add your own Token as incentives as well (Double Farm) If yes, how much?
1.4. How much circulating supply is there of your token? Please inform us briefly on your tokenomics, including the distribution and vesting schedule of the token (investors, team, yield farming, etc.)
1.5. Is your Project audited? By whom?

2. Minimum TVL: this will depend on the type of Farm. For a MIN + Project token Farm the requirement is a minumum of 100k ADA TVL for a period of 1 month. For a MIN only Farm the requirement is a minimum of 600k ADA TVL for a period of at least 2 weeks.
3. Minimum Time Traded: it is better to have a minimum period of 2 weeks, where the token trades without any kind of incentives in order to determine the organic Volume.
4. Governance: Please include a non-binding poll in your Proposal in the Forum, with the title “Should (include the token name) have a MIN Farm?” and 2 options: “Yes, in favor” and “No, do not add this Farm”. This poll should have a majority vote yes. In addition, each Farm addition should pass a vote on the Kitty Farmer Committee with 2/3rds in favor in the Kitty Farmer Committee before being added.

New Farms may be added and removed every month. These vote-requiring policies will be redone when on-chain governance is available later this summer.

26 Likes
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Great idea. I think this will help streamline these requests as they become more abundant. It will also give the community the ability to compare proposals using similar criteria. I also recommend that proposals include resources (esp. websites, whitepapers, team information, etc.)

Regarding the implementation of new farms (esp. point #3): Perhaps farms could be onboarded over the course of a number of weeks by slowly increasing their points until TVL, Volume, and whatever other metrics we want to optimize to find a steady state. “Shocking” the DEX by implementing a new farm too quickly (or with too many points) can have a number of unintended consequences.

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I like the idea however, on launch there were tokens added without the TVL .I suggest if the project is worth to be added then add it irrespective of time traded or TVL.
Eg., EMPOWA, that really great project tokens are in vesting now and the volatility will be very high based on the number of delegators in the ISPO pools and US investors were not able to get the token due to KYC requirements.
That will be a great candidate to be added to farm even though they dont meet the 2nd and 3rd points.

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I think it’s better to have other MIN pair LP, to create more liquidity. Meanwhile, after the launch of DJED, it’s very crucial to have DJED as stablecoin pair with MIN and other native tokens…

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We should also be careful to avoid targeted voting attacks by other interests and projects, as the governance is early and not fully implemented. IE if only 100-200 or so MinSwap users are voting in these early polls, a project could sway the vote by telling their members to flood the poll, despite something that may not be in the interest of long term Minswap users/holders.

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we need on chain governance. I recommend reviewing VyFinance’s recent developments in that area. But lets go beyond it to include those who forsake their voting rights through Liquidity Provision through the use of Receipt NFTs.

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WEN Template… But in all honesty this is a magnificent IDEA id love to use it to streamline requests for unsung projects that may be hidden gems… a’la RAY token :face_with_monocle: Thank you to the OG Poster. I second this proposal

2 Likes