This proposal is aimed at optimizing our current process for adding extra rewards to our ecosystem. The goal is to create a more responsive and efficient mechanism that aligns with the dynamic nature of our community and the broader market.
The current method involves initiating an AIP vote to introduce additional rewards. While this process has its merits, it has become evident that a more agile approach is necessary. Hence, I propose a shift in responsibility from the AIP vote to the DAO multisig, leveraging the same entity already managing the addition of pools to the Booster.
This proposal is not about reinventing the wheel but rather enhancing our operational efficiency. The AIP voting process has proven to be slow and cumbersome. By removing the AIP process for extra rewards and allowing the DAO multisig to make decisions ad hoc, we can streamline the process and better cater to the needs of our partners and users.
Crucially, this proposal introduces no new trust assumptions. On the Balancer side, they can already add extra rewards, which are then automatically picked up by the Aura smart contracts. Aligning the process with this existing practice ensures a smooth transition while significantly expediting decision-making.
In summary, this proposal aims to enhance our community’s ability to adapt swiftly, collaborate effectively with partners, and elevate the overall user experience. I look forward to your feedback and support as we work together to propel our ecosystem to new heights.
Specification
If approved, adding extra rewards by no longer need to go through AIP, and decision making in this area will be transferred to the DAO multisig to make decisions ad hoc, leveraging the same entity already managing the addition of pools to the Booster.
Voting
This vote will be a single-choice vote. You may vote “For” or “Against” this proposal, or choose to abstain from the vote. By voting “For” this proposal, you are voting in favor of removing the need for an AIP to add extra rewards.
Could you or someone else on the multisig share a snapshot of how “big” the “extra rewards” emissions are right now?
I understand the current system of doing so many AIPs is annoying to folks who keep Aura running. My chief concern here is the extra rewards system’s sheer existence is a way for projects to reward their LPs without having to deal with Aura lockers, the people who pay the bill at the end of the month to keep Aura running by supporting the Aura price. Without lockers to hold $Aura bags Aura as a product would be in much worse shape. It’s been argued before that protocols want to be able to give rewards to their LPs without bribing or paying the piper and whatever is good for TLV is long-term good for Aura lockers, but if we move extra reward votes direct to multi-sig I think it will basically be impossible for lockers to ever push for any sort of change to the program.
Thus if we’re effectively voting on whether to accept it in its current for forever and never change it again, could someone share a snapshot of how big the overall program is right now? On a weekly basis what is the USDC value of “extra rewards” flowing to LPs on Aura? How has the number grown over the last six months? What % of gauges are offering extra rewards?
The extra rewards this AIP is referring to are intermittent rewards that protocols give out to Balancer users, not regular incentives, so statistics aren’t readily available. Currently, a protocol wishing to add extra rewards to their Balancer pool needs to make a governance proposal, then reach out to the Aura contributors, who describe how the governance process works on our side. This process ends up creating unnecessary delays and awkwardness for Balancer BD, as they need to tell projects building liquidity on Balancer to come to Aura to get things completed. This AIP allows those extra rewards to be added by the DAO multisig directly, which mirrors the process on Balancer’s side, where the Balancer Maxis can add the same rewards directly already.
You do make a good point in that this approach does remove some authority from Aura lockers. With approval of this AIP, there is the assumption that Aura lockers will not vote against any future governance proposals by projects that wish to give away money in our ecosystem. But if you compare the two systems–the current, which forces projects wanting to give away free money to go through the governance process, and the new system, which allows projects wanting to give away money to more freely give it away–the second seems to be a better system, as ultimately Aura lockers will benefit more from this than if projects are dissuaded from interacting due to logistical hassles.
I think 2.5% of all extra rewards should be paid to Aura lockers. It may be a significant amount that could help shore up the dangerous price action on Aura so farmers can continue to farm safely. Without knowing how much it would be though it’s hard to say.
This would be interesting, but governance for this wouldn’t happen on Aura’s side, as the Aura DAO has no way of enforcing this fee, nor any action items to take if this fee is set.
In general direct incentive extra rewards are an under utilised feature because the hidden hand market is in general more capital efficient. Taking 2.5% wouldn’t amount to anything reasonable. Its also worth noting that direct incentives can be added directly to the Balancer gauge so as Contributor alludes to there would be no way to enforce a fee here anyway.