PolyWantsACracker Multiplier Updates
Greetings, everyone! We are now just over 1 day from the start of farming, and so we have done a final change pass on all the pool multipliers and implemented a bonus structure that we feel is fair to all participants. The changes are listed on our Docs page!
We recently polled the community to see what kind of bonus multiplier structure they would like to see when farming begins on 7–22 at approximately 2300 GMT. Overwhelmingly, with an absolute majority of the votes, the community voted to give non-native stakers a 2.5x bonus multiplier for the first 24 hours of farming, followed by natives having a 2x bonus multiplier on the last 72 hours of farming. Both the base and first-day bonus multipliers are listed on our Docs page.
I personally agree that the bonus structure the community voted for does serve everyone’s interests well. Presalers got prices on LITHIUM tokens that now seem very cheap (they are currently trading at 3.6x presale price or $18), and so most people voted to make the environment more hospitable to non-native stakers by allowing them some early bonus in compensation for their deposit fees. This vote should allow us to load up on our 60% buyback ammo as much as we can in light of the fact that our farm’s overall supply expansion rate is slower than most (11.5% on the first day).
When we adjusted the multipliers, the biggest change was the reduction to the LITHIUM-MATIC LP multiplier, which we reduced from 100 to 30. Although that may seem like a large drop, we did so based on demand: LITHIUM-MATIC had only 27% as much staked as LITHIUM-USDC as of our check point.
We distributed this multiplier to several other places, and the largest single beneficiary was the LITHIUM single staking pool. I have been INCREDIBLY IMPRESSED with the amount staked. People evidently do not want to sustain impermanent loss on their LITHIUM or part with their tokens. Why is that, you ask? Well, let me tell you.
One of the big reasons why so many people may be single staking LITHIUM, afraid to reduce their token count, is because they have already heard that Layer 1 tokens will be swappable for Layer 2 tokens. But there is more to elaborate about the particular mechanism. Of course, LITHIUM tokens will need to be sold to a presale contract in order to swap them to Layer 2 presale tokens. But actually, not one single person has bothered to ask what happens to the LITHIUM tokens after that.
Well, the solution we came up with integrates with Layer 2’s ownership feature. Although we have not specified exactly how ownership will work in Layer 2, LITHIUM holders will have a LARGE ownership share. What we intend to do is collect the LITHIUM from the presale contract, after which it will be no longer supported. Therefore, after the swap deadline has passed, we will be able to sell the LITHIUM tokens to the AMM and then distribute the money to Layer 2’s owners via a special smart contract we are currently finishing up.
To my knowledge, this is both the first time anything like this has been tried and also the first of many fundamental advancements that we intend to introduce. This situation will encourage people to swap for Layer 2 tokens rather than selling them because they can basically have their cake and eat it too. The speculative value that builds up during this layer will be transferred from the holders back to themselves while they simultaneously acquire another asset. Hopefully it pans out as a highly favorable situation. The net effect would be paying a portion of the money the LITHIUM is worth in exchange for a GUARANTEED allocation in the second presale and ownership of the new system.
When we set the parameters of Layer 2, we intend to give a VERY generous ownership percentage in Layer 2 to both LITHIUM holders and Layer 2 presalers. However, we will be raising an amount that will probably surprise you with how small it is after our first presale was so oversubscribed. Based on LITHIUM’s favorable early price action, we expect LITHIUM tokens to come into the presale contract for the next pre-farm tokens at a quite high high price, especially after the new system has been fully revealed. This should allow us to distribute a HUGE amount of money to Layer 2’s owners before farming even begins.
We hope to have our Layer 2 code audited shortly, so we will fill you in about more specifics later! In the meantime, enjoy the multipliers!