[PGP004] Update to Liquidity incentives

General Project Information

  • Project Name: Update on Liquidity Pool Incentives - Pegasys Farms
  • Proposal Version: 1.0
  • Proposal Manager: @david
  • Date: Feb 22th, 2024


PegasysDAO is committed to the continuous evolution of our decentralized governance framework, ensuring it remains responsive to the ever-changing dynamics of the DeFi ecosystem and the evolving needs of our vibrant community. In light of our Liquidity incentives coming to an end and Staking not being available yet, we find ourselves presented with an opportune moment to refine our liquidity incentives strategy within the Pegasys Farms ecosystem.

Proposal: Redistribution of Liquidity Incentives

PGP004 is a strategic adjustment to our previous liquidity incentive plan. With multiple delays happening to Pegasys Staking and Lending, we have the opportunity to keep our Liquidity Incentives, which have been well received by the community, running for an extra 4 months. The funds used for those incentives come from the unused ones proposed for Staking on PGP001.

The distribution is set to commence on February 29th, with subsequent allocations occurring on the 29th of each month, culminating in May. Every month, a total of 375,000 PSYS will be injected into the liquidity pools, with the allocation broken down as follows:

Total of 1.5M PSYS over 4 months


During the initial proposal of PGP001, we advocated for incentivizing farming and staking activities utilizing Pegasys Inflation tokens. However, nearly 8 months have elapsed since then, and the external entity tasked with developing the Staking functionality for Pegasys has yet to deliver a product that meets the rigorous standards of our protocol. Given the imminent conclusion of our Liquidity Incentives program on February 25th and the absence of live Staking functionality, we propose reallocating the unused incentives to bolster Pegasys’ Farms ecosystem.

This proposal, if approved, will be enacted immediately. The liquidity incentives will be monitored closely, and adjustments will be made as necessary to ensure the intended effects on liquidity and user engagement are achieved.

Projected Impact

The reallocation of incentives within Pegasys is poised to cultivate an environment that is more inclusive and appealing to all users on Rollux. This strategic shift is anticipated to incentivize deeper liquidity provision, bolster price stability, and ultimately elevate the overall user experience. Consequently, such enhancements are likely to drive heightened adoption and foster sustained growth for Pegasys within the broader DeFi landscape.


  • For: Agree with the updated allocation.
  • Against: Disagree with the proposal or recommend further adjustments.
  • Abstain: Choose not to vote but acknowledge the proposal.


Our dedication lies in the ongoing refinement of our liquidity incentive strategies to harmonize with the dynamic requirements of our platform and its diverse user base. Through voting on this proposal, the PegasysDAO community actively contributes to molding our ecosystem into a more inclusive and efficient environment for all users.

The voting period will begin on Feb 26th and end on Feb 28th. We look forward to your active participation in this decision-making process.


Sounds wise to continue at this critical time in the Syscoin Ecosystem. The proposal doesn’t say how to vote. Please provide additional information on “However, nearly 8 months have elapsed since then, and the external entity tasked with developing the Staking functionality for Pegasys has yet to deliver a product that meets the rigorous standards of our protocol.” Why have they “yet to deliver?” What are the recovery plans for this feature?


“With multiple delays happening to Pegasys Staking and Lending” How we reached to this situation? We need an explanation, this proposal sounds like we have no option, we continue farming or syscoin/rollux DeFi will die because we have no other things (in DeFi) to do. Please please hurry up with Staking and Lending or people will start selling their SYS and with disappointment they will never come back.

Voting happens on Pegasys L1: https://v1.pegasys.fi/vote . You should be able to do everything you need to vote on that page.

Syscoin allocated one of their partners to work on the code. We are reviewing their updates weekly

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