Summary

We propose to:

• Enable KAR as collateral at block #1113500 (est. 2021-12-16 01:30 UTC)
• Enable Bootstrap LKSM/kUSD and LKSM/KAR trading pairs at block #1113680 (est. 2021-12-16 02:00 UTC)
• Enable Incentive Programs for LKSM/kUSD and LKSM/KAR pairs at block #1114240 (est. 2021-12-16 04:00 UTC)
• Migrate part of Incentives for KSM to LKSM pairs at block #1114240 (est. 2021-12-16 04:00 UTC)
• Payout some of Loyalty bonus now for KSM incentive programs

Please, check the previous proposal regarding bootstrapping LKSM trading pairs and enabling/adjusting incentive programs here.

1. Enable KAR as collateral to borrow kUSD

Risk Parameters:

• Required Collateral ratio: 190%
• Liquidation ratio: 150%
• Liquidation Penalty: 15%
• Stability Fee: ~3% per annum
• kUSD Mint ceiling: $2 Million

Please, check the previous proposal for enabling KAR as collateral with more details here 2.

2. Enable Bootstrap for LKSM/kUSD pair with parameters:

• min contribution of KAR: 8 KAR
• min contribution of LKSM 1 LKSM
• target of KAR: 2500 KAR
• target of LKSM: 312 LKSM
• expected end time: #1113960 (est. 2021-12-16 03:00 UTC)

2. List LKSM/KAR on Karura Swap via Bootstrap

• min contribution of KUSD: 32 KUSD
• min contribution of LKSM: 1 LKSM
• target of KUSD: 10000 KUSD
• target of LKSM: 312 LKSM
• expected end time: #1111580 (est. 2021-12-16 07:56 UTC)

3. Enable Incentive Programs for new LKSM pools, migrate part of incentives from KSM to LKSM pools

Moving part of the incentives from LKSM to KSM will encourage the migration of liquidity to the new pools.

:warning: migrating part of incentives for KSM pools won’t impact previously earned rewards or loyalty bonuses.

All incentives changes are expected to start at #1114240 (est. 2021-12-16 04:00 UTC)

LKSM/KAR Pool

• 62,500 KAR rewards per month (total 375,000 KAR for all program period, 6 months)
• Loyalty Bonus: 80%
• The program is expected to run for 6 month
• Reward amount is expected to be adjusted monthly
• LKSM/kUSD Pool
• 125,000 KAR rewards per month (total 375,000 KAR for all program period, 3 months)
• Loyalty Bonus: 80%
• The program is expected to run for 3 month
• Reward amount is expected to be adjusted monthly

Migrating Incentives from KSM/kUSD pool

• 40% of KSM/kUSD remaining incentives will migrate to LKSM/kUSD pair, and additional KARs are also allocated, resulting in a total of 125,000 KAR per month for LKSM/kUSD pair
• reduction won’t impact previously earned rewards
• release 20% of loyalty bonus now and the remaining 10% will be released at the end of the loyalty program

Migrating Incentives from KSM/KAR Pool pool

• half of the remaining incentive will migrate to LKSM/KAR pool with additional KAR allocation, which results in a 62,500 KAR reward pool per month
• reduction won’t impact previously earned rewards
• release 20% of loyalty bonus now and the remaining 30% will be released at the end of the loyalty program