As the Project Manager for Sunshine and Rainbows, often referred to by its acronym SAR, I led the charge on a groundbreaking initiative envisioned by the innovative Shung @shunduquar. Our objective was to tackle a pervasive issue within the decentralized exchange (DEX) market: the disruptive influence of mercenary investors.
Mercenary investors, drawn by high annual percentage rates (APRs), typically swoop into DEX platforms, overshadowing smaller investors with their substantial capital, and ultimately destabilize the investment ecosystem. This is compounded by the traditional farm reward systems, which proportionately favor these investors, thereby exacerbating the problem.
To address this, we conceptualized and designed the SAR system — a pioneering rewards mechanism that inherently incentivizes and amplifies the benefits for loyal investors over those with deeper pockets. This system departs from conventional models by setting everyone’s APR at zero and allowing it to escalate over time, contingent upon the period they hold without claiming rewards. Such a mechanism promotes sustained investment, fostering a sense of loyalty and ownership towards the DEX.
Implementation and Learning Curve:
Implementing the SAR system involved navigating through intricate technical challenges and comprehending complex mathematical concepts. My role necessitated a deep dive into advanced algorithms and economic modeling, ensuring the system was not only fair but also sustainable in the long term.
The SAR system effectively cultivated a more stable investment environment, rewarding commitment rather than capital. It represents a shift in the paradigm of reward systems within the DEX space, signaling a move towards more equitable financial ecosystems.
The journey of managing the SAR project was instrumental in sharpening my skills in tackling technical complexities and enhancing my understanding of economic principles within blockchain technologies. This experience has fortified my capability to lead innovative projects that require both technical acumen and a deep understanding of market dynamics.