Saying NO to short term Inflation — Guarded Launch Results
First & Foremost, we want to express gratitude for the overwhelming response to the EasyFi launch. We went LIVE at 02:30 Hrs UTC On September 30th and in just 24 hours, we witnessed an influx of $22 Million as TVL (Total Value Locked) in the protocol. Current, TVL after 9 days is around $33 Million, and it’s counting by the days.
Guarded Launch was above our expectations, such high TVL on a layer 2 shocked everyone. While we are working on improving the platform, making it unique, auditing new features, and coming up with the next stage — there is no reason to keep the inflation. The first supporters got a part of the protocol, and they can now work further on making it a success. Learning a lesson from previous protocol launches, we believe keeping liquid inflation is not beneficial. So we are improving!
As new stages are unraveled, we will announce and discuss with the community new distribution stages. Our goal is to gradually delegate the protocol governance into the hands of its most loyal supporters — and we do it stage-by-stage, every time with new product features. We will make sure those distributions are spread out over time in small tranches with minimal to none market impact. We want EASY to go into the hands of many community members, letting the protocol grow together with its user base.
Now, we want to bring your attention to the daily emission of EASY through ongoing yield farming aka liquidity mining program. Currently, 10368 EASY are being distributed to three LIVE markets viz. DAI, USDT & USDC. At the current rate, more than 300,000 tokens shall be emitted in the market. After a round of discussions and feedback from our community and keeping in view the prevailing market conditions, we believe, the current rate of emission is adding more inflation than creating alpha for our farmers. The net $$ value earning seems to be not appropriate for optimum incentivization.
Therefore, to arrive at an optimum level, we have decided to reduce the rate of distribution by 25bps daily from the current 0.24 EASY per day. So, at the new emission rate EASY rewards shall be distributed as follows:
As shown in the above table, a reduction of 25% to ‘rate per block’ shall be made driving subsequent diminishing rewards over a while till the optimum net dollar incentive value to farmers is achieved. We will keep our community informed and updated during the time.
There are exciting announcements lined up in the coming days. As we shift from a purely inflationary model we’d like to get a little more creative on how our users interact with the EASY protocol. That means placing more of an emphasis on incentives for liquidity providers, additional incentives for EASY stakers as well as the inclusion of deflationary features that would help to balance these rewards over time.
Indeed, this is just the beginning for all of us at EasyFi.