Introducing of Boosted Yield Concept

Hi Magpie Fam,

This is gonna be a long thread. I know you guys are worry about the inflation of MGP, and hence some of you proposed the idea of reduction in emission.

I do think reduction in emission is good approach, provided that it won’t harm the project, neither short term nor long term. The reduction in emission shall be proceed in non aggressive manner, together with positive growth in demand.

Table below show our current MGP emission, with total 1537 of weight, 3MGP/s.

Pool Emission Type Weight
mWOM MGP 280
vlMGP MGP 280
BUSD (Main Pool) vlMGP 280
USDC vlMGP 280
USDT vlMGP 280
DAI vlMGP 110
BNBx vlMGP 0
stkBNB vlMGP 0
aBNBc vlMGP 0
BUSD (Side Pool) vlMGP 10
HAY vlMGP 10
BUSD (Innovation Pool) vlMGP 5

I propose to reduce the weight of main pool emission but remain the rate of 3MGP/s. This will causing the main pool generates excessive MGP that not distributed to the LP directly. Kindly refer to the table below:

Pool Emission Type Weight New Weight Weight Differences
mWOM MGP 280
vlMGP MGP 280
BUSD (Main Pool) vlMGP 280 180 100
USDC vlMGP 280 180 100
USDT vlMGP 280 180 100
DAI vlMGP 110 60 50

Taking BUSD pool as example, the new weight of 180 will generate about 0.35 MGP/s (180/1537*3) and distributed among BUSD-LP. The remaining weight of 100, which is about 0.195 MGP/s to be kept and used for Boosted Yield.

Alright so how’s the boosted yield works?

In order for LP to obtain that Boosted Yield, one must having MGP in vote-locked condition, meaning one must holding vlMGP to get BOOSTED! The detail calculation of New APR with new pool weight as shown in table below, with the corresponding USD$ MGP available for Boosted Yield. And this amount will be shared among all vlMGP holder, if they are also LP at the same time.

Pool Current TVL
(USD $)
Assumed MGP Price
(USD $)
Base APR%
(WOM only)
Estimated Current APR% (vlMGP only) New APR% (vlMGP only) USD$ MGP/year for Boosted Yield
BUSD (Main Pool) 4470000 0.009 3.53 3.47 2.23 55398.30839
USDC 4960000 0.009 3.34 3.13 2.01 55398.30839
USDT 3810000 0.009 3.78 4.07 2.62 55398.30839
DAI 2290000 0.009 2.85 2.66 1.45 27699.1542

Again, by using BUSD pool as example, below is 4 case studies of new Total APR if the LP get boosted! The boosted APR is calculated by using the % of own vlMGP/Total vlMGP. At the time writing, there is 52.23M vlMGP.

Case Study Deposit into BUSD Pool Own vlMGP Base APR (WOM only) New APR (vlMGP only) Boosted APR (vlMGP only) Total APR
1 100 20000 3.53 2.23 21.22 26.98
2 1000 20000 3.53 2.23 2.12 7.88
3 100 100000 3.53 2.23 106.11 111.87
4 2000 100000 3.53 2.23 5.31 11.07

So, what’s the benefits we can see from the figure?

:point_right: Create new demand for MGP
:point_right: Lucrative total APR
:point_right: Help to increase Total TVL due to some vlMGP holder also want to become LP to take the opportunity for extra income.
:point_right: Create sense of belonging for LP as part of Magpie family by holding vlMGP.
:point_right:Emission rate remained 3MGP/s, not increase.

Further refinement of the idea
:fist_right: Set min deposit requirement for LP to be qualified for boosted yield. For example. $100 as minimum.
:fist_right: Set hardcap for Boosted APR. Some LP with little main pool deposit but holding relative big bag of vlMGP might getting >100% of APR. With hardcap of 50%, then boosted APR of these LP will be cap at 50%, the remaining vlMGP is then moved to “WOM UP” pool, continue reading for more detail.
:fist_right: Since the boosted APR is calculated based on % of own vlMGP/Total vlMGP, while not all vlMGP is LP, then not all the Boosted fund will be utilized, the remaining shall moved to “WOM UP” pool.
:fist_right: Abolish of penalty pool and introducing new “WOM UP” pool. All penalty, remaining unused boosted fund shall be moved to this “WOM UP” pool. Once the pool reached 500k of MGP then create the WOM UP campaign, to let user convert WOM to mWOM (not swap from Wombat) to generate new veWOM for Magpie. User convert mWOM in such a way will get additional vlMGP in 1:1 basis besides the corresponding mWOM. For example, if user convert quantity N of WOM, will get (N x peg) of mWOM + (N x peg) of vlMGP. and of course there will be a vesting schedule.
:fist_right: in the foresee future, with such practice Magpie will own more and more veWOM and thus increase the Base WOM apr in the main pool. Then the MGP emission could start to be adjusted/reduced in a smooth pace. For example, reduce from 3MGP/s to 2.8MGP/s and getting lower and lower eventually.


Thank you, KSL, for taking the time to create such an extensive thread on ways to improve Magpie. I truly appreciate the thought and effort you put into it. I agree with many of your suggestions, particularly the move penalty to the WOM UP campaign as it has been shown to be the most efficient method for accumulating veWOM, based on past experience and data. As for the LP APR boost mechanism based on vlMGP, I have previously considered it. However, my concern is that many of our LP users are risk-averse and chose Magpie because it allows them to achieve boosted yields without holding veWOM. I am interested in understanding if they would be willing to hold veMGP. To gain insight on this, we could conduct a survey to gather feedback. What do you think about this?

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We currently have an ongoing proposal draft regarding emission adjustments. Please share your opinions, we would love to hear your thoughts!

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Yes that would be great if we’re able to conduct a survey to gather feedback from LP.

To be clear, LP and MGP holder might having 2 different objectives. LP prefer high APR while MGP holder prefer low emission. However, the final goal is the same → earning.

To push the earning, regardless you’re LP or MGP holder, we need MGP price to be stable or increased.

So how to push the price without reduce emission significantly? is the DEMAND.

We need more users who willing to lock MGP in long term and helps to reduce the circulating supply of MGP in the market. Continuing reduce the emission without create new demand might not able to push the price effectively.

This concept is trying to get LP becomes MGP holder, if they know holding a bag of MGP could boost their APR, they probably not become a frequent seller and this will help to at least reduce selling pressure.

At same time, it helps to get MGP holder becomes LP as well.

actually one more thing I would like to add, the reason why I think this proposal is important.

This is because by gaining vlMGP the power to boost yield, it will help for future expansion. Imagine that in future we might have so called Mag-War to build Magpie own ecosystem, in which Magpie incubates projects that trying to accumulate as much vlMGP as possible for maxing the earning.

Of course, this is way to far from current development, just to point out there is possibility to expand our ecosystem from this Boosted Yield concept.

Great to see this, Magpie army growing strong. If vlMGP can offer increased yields on top of Magpie’s already boosted yields it would open many opportunites for Magpie in the future as MGP already controls veWOM this would bring more value and interest from other protocols/institutions. For the emission i support to lower MGP emission in general and this would also allow for vlMGP tokens to have a better ratio controlling veWOM or other veTokens moving forward.

Why not qualify and I minted the nft early