Seeping Harvest ⭐️

What's this?

Harvest Locks have been incredibly popular recently, and it has led to the price being more stable most of the time. However, during the Harvest Unlocks, price will surely dump since investors are rushing to dump off all of their harvests. So, are you tired of that predictable outcome happening? Well, you'll be happy to read that Luna Finance finally came up with the model that is aimed at tackling just that!

Problems with the Old Harvest Lock Model

Let's take a look at the problems ailing the Collective Harvest Lock Models. The problem is that the price is definitely at its highest prior to the unlock, and hence, harvesting and selling it as fast as possible is the obvious strategy to make some quick bucks. As long as there is one simple and obvious way to ensure profits, then there is a problem with the model because it becomes a race to finish first, which creates chaos in a yield farm. If there is an obvious best strategy to take profits, then there would be an obvious dump, and whenever there is an obvious dump, there is little chance for recovery, and little chance for investor's confidence. It becomes a game for the bots, since bots would have the fastest fingers to execute. Now that we identified the problems, let's head over to solving the issue.

Approach to the Solution

To solve this issue, there is a need to ensure that there is no simple and straightforward best way to ensure profits. The issue with the old model is that the obvious way to ensure profits is to be the first to harvest and sell. We just have to get rid of this mentality, as stated in Seeping Claim.

The Solution

Similiar to the concept of Seeping Claim, when the harvest unlocks, every farmer would start off being able to harvest 0% of their remaining unharvested amount in that particular pool. For every X minutes that pass, the person would be able to harvest an additional 1% of their unharvested amount in that particular pool they are farming in, assuming that same person has not harvested within the past X minutes. Upon clicking harvest, the person would get to harvest Y% of his unharvested tokens in that pool, and his harvest % would drop back down to 0%, thereby resetting. As a result, the amount harvested is based upon your percentage % of the UNHARVESTED amount in that particular pool, continuously harvesting might not be the best strategy, as you would get to harvest a smaller amount every X minutes, as seen in the table under Seeping Claim. Do note that for each pool, the harvest time (X minutes for 1%) varies, and would be announced at a later date. Also, each pool has an individual timer, and harvesting in the BUSD pool, does not reset the harvest for your WBNB pool, and vice versa.

As you can see, there are advantages and disadvantages to different strategies. By harvesting continuously, you might be able to sell some of your harvests at a higher price, but you get to harvest lesser over time compared to harvesting periodically.

Such is the mind games that we want to implement, making it less predictable and providing a better price action analysis.