# \[Implemented\] Scale down LP rewards

**URL:** <https://gov.hashflow.com/t/implemented-scale-down-lp-rewards/338>\
**Category:** Governance\
**Created:** [November 26, 2022, 12:44am UTC](https://gov.hashflow.com/t/implemented-scale-down-lp-rewards/338 "2022-11-26T00:44:15Z")\
**Posts on this page:** 11\
**Page:** 2

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**Author:** ![AAI](https://yyz1.discourse-cdn.com/flex035/user_avatar/gov.hashflow.com/aai/32/120_2.png) [@AAI](https://gov.hashflow.com/u/AAI)\
**Post date:** [November 27, 2022, 12:26pm UTC](https://gov.hashflow.com/t/implemented-scale-down-lp-rewards/338/21 "2022-11-27T12:26:20Z")

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I say yes  
But I would also include in the final form proposals from @Mehdi with his penalty system and flexible motivation

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**Author:** ![Mehdi](https://yyz1.discourse-cdn.com/flex035/user_avatar/gov.hashflow.com/mehdi/32/113_2.png) [@Mehdi](https://gov.hashflow.com/u/Mehdi)\
**Post date:** [November 27, 2022, 2:15pm UTC](https://gov.hashflow.com/t/implemented-scale-down-lp-rewards/338/22 "2022-11-27T14:15:54Z")

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do not like the idea to be honest

and regarding HFT rewards, when hashverse implemented we have a good rewards by staking our tokens, anyway we can create a proposal to increase HFT yield for HFT LPs !

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**Author:** ![Alustath](https://avatars.discourse-cdn.com/v4/letter/a/a183cd/32.png) [@Alustath](https://gov.hashflow.com/u/Alustath)\
**Post date:** [November 27, 2022, 4:45pm UTC](https://gov.hashflow.com/t/implemented-scale-down-lp-rewards/338/23 "2022-11-27T16:45:48Z")

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if hashverse staking yields normal HFT that would be a good alternative, but as what I understood from previous discussions, it will yield only veHFT which is only for voting power, so no real return on investment for HFT staking within hashverse

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**Author:** ![gxmxni](https://yyz1.discourse-cdn.com/flex035/user_avatar/gov.hashflow.com/gxmxni/32/55_2.png) [@gxmxni](https://gov.hashflow.com/u/gxmxni)\
**Post date:** [November 27, 2022, 5:40pm UTC](https://gov.hashflow.com/t/implemented-scale-down-lp-rewards/338/24 "2022-11-27T17:40:00Z")

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The point of HFT is to vote. veHFT is 100% going to allow people to do that. However, HashVerse rewards do not result in veHFT.

1. You get veHFT is you lock your HFT – this veHFT is going to contribute to your Hashflow Rewards
2. Your Hashflow rewards are going to be in HFT; you can do whatever you want with this HFT, including re-staking it to get more veHFT

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**Author:** ![gxmxni](https://yyz1.discourse-cdn.com/flex035/user_avatar/gov.hashflow.com/gxmxni/32/55_2.png) [@gxmxni](https://gov.hashflow.com/u/gxmxni)\
**Post date:** [November 27, 2022, 5:40pm UTC](https://gov.hashflow.com/t/implemented-scale-down-lp-rewards/338/25 "2022-11-27T17:40:49Z")

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This looks complex, and I think it should be evaluated as a separate topic to be very frank. It has to be assessed from a technical standpoint as well. Are you able to create another proposal with these ideas?

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**Author:** ![gxmxni](https://yyz1.discourse-cdn.com/flex035/user_avatar/gov.hashflow.com/gxmxni/32/55_2.png) [@gxmxni](https://gov.hashflow.com/u/gxmxni)\
**Post date:** [November 27, 2022, 5:44pm UTC](https://gov.hashflow.com/t/implemented-scale-down-lp-rewards/338/26 "2022-11-27T17:44:17Z")

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@Alustath when I think of a good APY I think of something that is, above all, reasonable. No APY in the double digits is reasonable right now. If you want to see what reasonable APY looks like, you should check out AAVE, where you see everything under 5%.

To add to that, this HFT APY is only one component of the APY generated by pools. The goal is that APY will be generated in the underlying asset (if you deposit ETH you get ETH APY) and that APY alone should be competitive against AAVE. HFT APY should just come on top of that to sweeten participation.

So when we think of these numbers, we should really think “how much HFT should be distributed to participants monthly?”.

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**Author:** ![Mehdi](https://yyz1.discourse-cdn.com/flex035/user_avatar/gov.hashflow.com/mehdi/32/113_2.png) [@Mehdi](https://gov.hashflow.com/u/Mehdi)\
**Post date:** [November 27, 2022, 6:42pm UTC](https://gov.hashflow.com/t/implemented-scale-down-lp-rewards/338/27 "2022-11-27T18:42:43Z")

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sure, Will also include a insurance pool in it

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**Author:** ![Alustath](https://avatars.discourse-cdn.com/v4/letter/a/a183cd/32.png) [@Alustath](https://gov.hashflow.com/u/Alustath)\
**Post date:** [November 28, 2022, 4:09am UTC](https://gov.hashflow.com/t/implemented-scale-down-lp-rewards/338/29 "2022-11-28T04:09:24Z")

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thanks for your reply and clarification, in this case, I believe that this proposal is better to be postponed after the launch of Hashverse to be able to take one correct decision after we have a clear vision for the following:

1. comparison between rewards from hashverse staking system and LP farming.
2. comparison between APYs between flexible and locked staking for several periods.
3. voting powers after launch of hashverse (veHFT only or to HFT deposited in LP as well)
4. balance between LP farming and hashverse staking to avoid sudden migration of LPs

Regards,

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**Author:** ![gxmxni](https://yyz1.discourse-cdn.com/flex035/user_avatar/gov.hashflow.com/gxmxni/32/55_2.png) [@gxmxni](https://gov.hashflow.com/u/gxmxni)\
**Post date:** [November 28, 2022, 7:54pm UTC](https://gov.hashflow.com/t/implemented-scale-down-lp-rewards/338/30 "2022-11-28T19:54:05Z")

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I think there’s a very important distinction to be made between APY on HFT staking itself (to be refactored in the HashVerse) and APY on something like ETH.

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**Author:** ![EY84](https://yyz1.discourse-cdn.com/flex035/user_avatar/gov.hashflow.com/ey84/32/42_2.png) [@EY84](https://gov.hashflow.com/u/EY84)\
**Post date:** [November 28, 2022, 8:45pm UTC](https://gov.hashflow.com/t/implemented-scale-down-lp-rewards/338/31 "2022-11-28T20:45:50Z")

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I vote yes!  
This is a reasonable decision and proposal.

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**Author:** ![gxmxni](https://yyz1.discourse-cdn.com/flex035/user_avatar/gov.hashflow.com/gxmxni/32/55_2.png) [@gxmxni](https://gov.hashflow.com/u/gxmxni)\
**Post date:** [November 28, 2022, 10:03pm UTC](https://gov.hashflow.com/t/implemented-scale-down-lp-rewards/338/32 "2022-11-28T22:03:18Z")

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