Provide rates rebalanced

Calculating Provide APY

With the latest app update, we’ve rebalanced Provide calculations and implemented new rates in accordance with this post.

As of now, the incentive pool for Provide contains a fixed amount of PRV that will be equally split between the top 5 PRV pairs (BTC, ETH, DAI, USDT, and DAI). The pool size starts at 10% of the block reward.

This means that the rates for those 5 pairs have changed today. The APY for providing PRV, LTC, ZEC, and DASH has not changed.

New Provide rates

Coin APY
PRV 21%
BTC 3%
ETH 5.50%
DAI 8%
USDT 11%
XMR 11.50%

Remember, more changes are coming for Provide. In the short term, we’ll automate reward pool rebalancing and implement a minimum trading fee to fund rewards. Then, Provide will be phased out entirely and replaced with the decentralized Add v2.

If you have questions, comments, or concerns, share them below!

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You should never change rates so much at once. For example everybody will withdraw their btc now.

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hey @SecurityFirst that’s the main idea of rebalancing.

I don’t think that everyone will withdraw it. Simply because if someone withdraws, the APY will increase accordingly (Total reward is fixed for each pair).

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The rebalancing you speak of is a curated process rather than an automated one?

Thanks for the update @andrey.

At the moment the Incognito team are setting these rates. However, in the future, once the DAO - Decentralised Autonomous Organisation is implemented, will PRV holders be able to vote on the “provide rates”, or will it be the case that the rates will auto-rebalance based on supply/demand algorithms?

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Hey @keyglock yep, but devs work on the automation. Plus after privacy v2, it will be automated on a blockchain level.

Hey @Linnovations yep, we will be able to decide on which % of the block reward should be allocated for incentivizing liquidity.

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Looks like BTC is back to 10% APY now?

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others have different APY also, maybe a bad update?

Has this changed since posting time? I noticed 3% APY on BTC for example for a few days but I checked just now and it’s back to 10% APY.

@andrey any info about this please?

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Some and different users frequently complain about the high fees and we just explain why they are so. Instead of this, why don’t we still support BUSD (BEP2) in Provide? @andrey @duc Since it has a trusted setup?

If we supported BUSD (BEP2), the users would transfer BUSD assets to Binance with very low fees and convert them to USDC or USDT without paying any trading commission (maker or taker does not matter for a long time). Since USDT has also TRON option, the exit from the Incognito would cost under 1$.

The reverse way also would benefit from BUSD (BEP2). Currently, the entry (with stablecoins) to Incognito also suffers from the high fees.

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I’m also seeing the old higher rates.

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I see the old highest rate for all coin. Two days ago the rates were same as the table you posted

Yes, they got back to the old rates. Please see what duc wrote in Telegram yesterday.

If things changed back for whatever reason, it should be announced here. We are not all on Telegram.
@duc

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I agree with Jamie, the reversal should have been communicated more widely.

I’ve pre-emptively moved some funds from DAI->USDT and lost about $100 on slippage, but would have been worth longer term because of the rate change. I’m sure I’m not the only one who did this as I saw loads of DAI->USDT transfers over the last week.

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I remember a recent post promising more transparency on communication - the current setup seems to be to have an idea of what’s going on we need to check bulletins in app, this forum, and telegram. This is not a good working model to say the least.

Could the team commit to improvement on this front? It is harder to take the project as ring run seriously when decisions seem to not be just random and communication is all over.

Pick a channel for product announcement and stick with it. It shouldn’t require third party channels when you have a forum nd in app bulletins to stay in the loop.

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I think the related guys are on vacation because of the Easter holiday.

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Hey guys, sorry for the confusing and late announcement. We reverted Provide’s APYs to previous ones. As you could see in the last few posts published officially from the core team, decentralization and privacy are things we prioritize to focus on in the next few months so changing something on a temporary product like Provide might introduce distraction to the team. That’s why we decided to roll back the changes and will be working on a longer-term plan for adding liquidity (aka allow people to add liquidity directly to pDEX and earn rewards from trading fees)

I will publish a new roadmap along with an exact timeline for each item in a couple of days. Apparently, it will include Liquidity 2.0 which’s related directly to the thread. Apologize again for the unprofessional.

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Hi Duc. Thanks for the update.

I have some questions… Maybe someone can help me to understand.
If Provide is changing so that a fixed APY is no longer offered, but people can be offered returns on putting their $ into liquidity and therefore getting a reward from trading fees, what I see is:

Massive withdrawal of funds from the project --> Potential massive slippage of PRV, and inflation of PRV price --> Loss of profitability for node owners --> Node owners unstake and leave --> More slippage and inflation --> Rinse and repeat

As a PR point: Why would people keep their crypto in Incognito at this point in time if no fixed APY is offered, but they are only rewarded with a “mystery amount” of return based on transaction fees (which are microscopically low right now.)

Will rewards from transaction fees be at all comparable to current APY rates, and therefore can we compete with other platforms for the attention of crypto users and getting them to add their crypto into our Liquidity? If not, I just see a massive migration of users over to other platforms (like SCRT).

I have concerns (which may or may not be warranted based on my current understanding of the changes being made) that this change to Provide/Liquidity could be a massive, project killing move.

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I have to agree with some of Mike’s sentiments, though I also fall into the bucket of “I dont know”.

I would add that - the #1 glaring problem with incognito (how it is built, how it is presented, and how the information about it is delivered) - is that the team seems to be oblivious and blind to the fact that 99.9% of users are not interested (or not capable) of all the intricate details of how incognito works - the math and tech behind it.

According to your own numbers being reported, there is about 0.1% of users active on this forum. Most users will never come to this forum or will come once, see a bunch of your overly complicated technical posts, and never return.

Your PR and marketing is horrible - and having me say that means its 10x worse because I have been a tech CEO/CTO my entire life and am horrible at marketing/PR myself… so I do understand why (the same reason I suck at it and always have to find a partner who is good at it, or hire someone who is great at it).
However this is really the problem I am seeing and the root cause of 90% of confusion, misunderstanding, and posts like Mike’s.

You need very simple - call it idiot proof - delivery of information. Short bullet-list of points and features. Updates require the same thing. 99.9% of users will not read your entire post. They (we) want quick list of bullet-points telling us how things are, whats changing, what to expect.

I do not believe more than 1% of users at most (being generous) care about anything more than what kind of APY% we can get being here.

If you are not catering to us, incognito will fail.
All your privacy crusade issues are irrelevant to the massive majority.
They are gravy on top and a nice feature.

I am only staking about $50k worth of crypto here right now because I dont want to risk more. Also the only reason I am here is because I needed to stake my XMR and found incognito somewhere in some forum thread.
The ONLY reason I am here right now is because XMR rate%, and as an added bonus the LTC and DAI rates. If LTC and DAI were removed or rate went below what I can get elsewhere, I’d still stay for XMR - but without the APY% rewards there is no chance whatsoever I would be here.

Take provide away - or something as simple and rewarding - and you lose 90% of users (probably 99% - but I guarantee at least 90%).

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