## Orkan Treasury Statement: To yield or not to yield?

We have secured our first spiritswap yield allocation this week. Once the farm was active, our original plan was to farm the yields through the protocol owned liquidity and compound rewards for extra voting power. However, not long after the farm started, several individuals added ORK/FTM liquidity and farming themselves, owning over 30% of the current liquidity so far.


This left us facing the fact that with our current PCV, the protocol wouldn't be able to recoup its investment through spirit yields since they are being shared with other farmers. However, new liquidity is coming into the protocol is highly encouraging for our goals. To sustain this trend, we reassessed what the impact of adding the protocol owned liquidity would have on the market dynamics at this point:

The investment returns are calculated as follows:

-> yield = total pool yield * % tokens staked

If the protocol adds the LP
-> The protocol will earn ~ 70% of tokens staked
-> The pool will APR go from 500% -> 200%

We believe that adding the protocol-owned liquidity would dissuade new users from adding liquidity as the incentive to do so gets less attractive compared to other pools. We have also seen a significant increase in Bond sales since the yield was activated that can replace the expected bond revenue and then some. Metagovernance is not necessarily about hoarding votes. We intend to create opportunities for users to create value for themselves through our network and form a long-lasting relationship that can make the most extensive BTC treasury on the interchain.


With that in mind, we want to let everyone know that for the time being, the protocol is not going to farm the yield on the ORK/FTM LP to allow users to earn in our stead. We will continue to pay bribes for continued yields to secure a consistent return for users to farm FTM/ORK LPs before they bond them to the protocol. To maintain a sustainable bribe, we will base the payment size depending on bond volume sales for that week. We will communicate the specific metrics of each bribe in advance.