What's Changed?
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We'll pre-mint 2000 KEGG tokens and add all of them to the initial liquidity pool. As compared to layer 1, we pre-minted 1000 tokens, only 200 of which went to the initial liquidity pool, the other 800 KEGGs were burned by the dev team over the course of Layer 1 farming. We decide to make the change for 2 reasons: 1) we need a bigger initial liquidity pool to reduce the price volatility 2) investors were skeptical about the 800 tokens pre-minted to the dev team. Even though we kept our promises and burned all of them, it still created unnecessary anxiety for our investors.
In Layer 1, for every token minted to our investors, the smart contract minted an additional 0.05 tokens (5%) to the dev team. In Layer 2, we'll move this number to 10%. Again, we'll burn this fee opportunistically to counter adverse price movement.
Update: Per the community poll result, dev fees collected from Aug 20th onwards will not be burned. They will be put in a dividend pool that runs from the end of Layer 2 to the start of Layer 3. Investors can stake KEGG in that pool to earn more KEGGs.
The most notable change in the Layer-2 smart contract is the tracking of total tokens harvested. We display this number in the "Farms & Staking" card on the home screen, where your token balance was in Layer-1 UI.
"Tokens Harvested" is a counter on the farm tokens minted to your address. Each time you click the harvest button, your "KEGG to Harvest" goes to zero; your "KEGG Harvested" increases by the previous pending KEGG amount.
This is a critical update that reinforces PolyQuail's "layered farming structure." Starting in Layer 2, investors' behaviors will have an economic impact on future farms. Investors who have harvested more than X tokens in Layer 2 can enjoy a 25 bps discount in deposit fees in Layer 3. If the same investors were to harvest more than Y tokens in Layer 3, then they will get an additional 25bps fee discount in Layer 4. X and Y are determined during the deployment of the next layer.
As you can see, we are trying to encourage the following behaviors:
regular participation - the more layers you have participated in, the more discount you are likely to qualify
large deposits - the more you deposit, the more tokens you will harvest and the more likely you'll qualify for a fee discount in the future
staking KEGG tokens or becoming a liquidity provider for KEGG - KEGG pools take the lion's share of all tokens minted, for people who don't have a lot of capital to deposit, they can still qualify for future fee discounts for staking KEGG or KEGG LPs.
Example:
Layer 2:
Suppose initially, your pending KEGG is 10 and you have not harvested any KEGG, your stats are as follows:
KEGG to Harvest: 10 | KEGG Harvested: 0
Click "Harvest"
KEGG to Harvest: 0 | KEGG Harvested: 10
Send 10 KEGG to another address does not affect either stats
KEGG to Harvest: 0 | KEGG Harvested: 10
Purchase 10 KEGG also doesn't affect either stats
KEGG to Harvest: 0 | KEGG Harvested: 10
Wait for a day, now you have more pending tokens:
KEGG to Harvest: 5 | KEGG Harvested: 10
Click "Harvest"
KEGG to Harvest: 0 | KEGG Harvested: 15
Layer 3:
Suppose, the contract specifies that anyone who has harvested more than 12 KEGGs in Layer 2 will get a 25 bps discount in Layer 3. Because you harvested 15 KEGGs in layer2, now your deposit fee is 3.75% for popular pools such as USDC and BTC.
