[Consultation] Setting a conversion rate for SPIN to GYFI

Gyroscope Improvement Proposals Consultations
24

GM,

Thank you, FTL Labs, for moving the discussion to The forum instead of private channels, where everyone can have a voice in shaping the future of the DAO.

First, I’d like to point out that calling the SPIN program a “success” is debatable, especially when we compare its metrics to those of recent competitors like Ethena, Elixir, and Usual. After seven months, we’ve reached nearly $3M in TVL worth of $GYD—a result that may not meet everyone’s expectations. Additionally, it may not be fair to compare the yields of an established, battle-tested DeFi product like Curve or Convex with those of a newly launched stablecoin like Gyroscope, where there are higher associated risks and rewards are locked.

In my view, here are some issues that have made the program less appealing to the general market:

  • Unclear timeline and duration of the incentive program
  • Low APR, especially compared to other market opportunities
  • Poor UX for retail users, who struggle to find the best strategy (e.g., whether to earn bribes and yields or earn SPINs)
  • Uncertainty around incentives for OGs, Gyroscope founding members, or NFT holders, as highlighted by @Mrfti
  • Lack of transparency about Gyroscope’s valuation and total funding raised to assess FDV at TGE
  • Unknown timing of TGE and locked rewards
  • No integration with leveraging tools like Pendle to increase TVL metrics
  • Late-stage launch of Web3 campaigns on Galxe during the SPIN program

In my opinion, regardless of how much $GYFI we allocate to the current LPs, without a successful incentive program, we will struggle to achieve a strong valuation. As @PanCake highlighted, a $30M valuation seems optimistic given the current state and may fall short of the expectations of early users and OGs who have supported Gyroscope since 2021.

My Suggestions:

  1. Design a new incentive program by the DAO and FTL Labs, inspired by other successful programs, that addresses the issues listed above. This program should include a clear TGE timeline and unlocked rewards to boost TVL and battle-test Gyroscope’s designs and mechanisms. Most importantly, it should aim to grow the community.
  2. To prevent dilution by new users in the incentive program, we should reach a consensus on this proposal and reward early $GYD adopters. I will share my thoughts on this proposal in another comment.
  3. Simultaneously, propose rewards for NFT holders and OGs as outlined by FTL Labs, to ensure they’re adequately acknowledged and incentivized.
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