Restoring our TVL & Liquidity
In this article, we’ll explain what our team has decided in a bid to restore our liquidity back to where it once was. Liquidity is the backbone of every decentralized exchange and to regain liquidity, we will be implementing some key changes.
Why we are removing certain farms?
Our team has done an in-depth analysis on the trading volume and liquidity on AutoShark and has come to the conclusion that we have to reallocate farm emissions to increase back our trading volume > increase FINS dividends > increase FINS price. We will be prioritizing key liquidity pairs on AutoShark and to do so, we will be boosting their emission by removing them from other farms.
This will ultimately see much higher APR in the existing farms and in turn, higher TVL as more liquidity providers pour into the core farms.
As we re-allocate more emissions to the core farms, we will be able to draw in more TVL because for every x amount of emissions, the expected APR for major farms is lower.
Eg, users expect a 20% APR for stable farms like USDT/BUSD but expect a min of 100% APR for SHIB/BNB.
The primary function of a DEX is to incentivize liquidity providers in 2 ways:
- gaining LP value over time via trading fees distribution
- earning $FINS tokens via emissions
By having non-essential pairs such as AVAX-BNB, AAVE-BNB deprecated, the existing farms will see a good APY boost across the board. This will attract more liquidity into core farms such as BUSD-BNB, USDT-BNB, which will allow AutoShark DEX to properly function and generate more trading volume with reduced slippage.
The purpose is to redirect $FINS rewards from underperforming trading pairs and give them to core farms that are doing much better as they are providing the most value to AutoShark DEX.
Increased in $FINS dividend rewards
With an increase in liquidity on major pairs, we expect a higher trading volume which in turn means more trading fees will be added into the dividend pool for $FINS holders. We can expect a higher APR for $FINS stakers.
The current APY for FINS is at 197.63% on the dividend pool. We hope to be able to increase it back to over 300% where it will be more sustainable.
Increase in block reward
The current emission is at 20 FINS block. We have increased it by 20% to 24 FINS per block. This will incentivize stakers to come over from other platforms seeking higher APR farms.
We will reduce the block rewards gradually as our liquidity increases. Our team strongly believes it's important that we first establish back liquidity that we have lost.
Boosting of FINS-BNB farm
With the rewards distribution across all other existing farms, we are boosting the multiplier of FINS-BNB from 40x to 60x to properly reward our native token holders and especially those who are currently providing liquidity for FINS at AutoShark. Ceteris paribus, this will help boost demand for FINS, and consequently, the price of FINS will increase, leading to higher APR for all farms > more TVL and liquidity.
JAWS-BNB >FINS and ATLAS-BUSD > FINS have been deprecated currently so can first establish liquidity back for our AMM but we have plans to restore them once the liquidity situation on AutoShark increases.
ATLAS-BUSD creates its own liquidity currently on https://atlantis.autoshark.finance/
and JAWS-BNB currently have their own JAWS-BNB > JAWS farm on https://autoshark.finance/farms
List of FINS Farms that will be deprecated:
Partner projects who have made contributions to the Ocean pool will keep their existing farms!