Changes to the $TRDL Rewards Strategy

Current State

At the time being we are distributing $TRDL farming rewards by the following metric:

- vBTC power pool: 50%
- $TRDL/ETH pool: 30%
- vBTC spot pool: 5%
- renBTC/ETH pool: 5%
- tBTC/ETH pool: 5%
- wBTC/ETH pool: 5%

The objective of farming rewards is to bootstrap the project and stabilize the peg of vBTC.

Problems with the current strategy

Incentivizing liquidity in the ETH pools of tokenized Bitcoin projects does not create a benefit for the Strudel Protocol as these pools do not help with the price stability of the vBTC token.

Changes

Therefore we will remove farming rewards for the renBTC/ETH pool, the vBTC spot pool, the tBTC/ETH pool, and the wBTC/ETH pool.
Instead, we will be giving out 10% rewards on a tBTC/vBTC SushiSwap pool and 60% on the vBTC power pool.

- vBTC power pool: 60%
- $TRDL/ETH pool: 30%
- vBTC spot pool: 0%
- renBTC/ETH pool: 0%
- tBTC/ETH pool: 0%
- wBTC/ETH pool: 0%
- vBTC/tBTC SushiSwap pool: 10%

We will initialize the changes through our governance process which requires 24 hours of delay. The changes are expected to go live at 10:00 UTC on Saturday, the 17th of October.

Expected Outcome

Limiting farming rewards to protocol pairs is expected to result in less selling pressure for the reward token, caused by external liquidity.