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id Title Status Author Description Discussions to Created
TIP-197 LP incentives tapering, moving POL position Draft Milkywave (@milkywave_) Tapering of incentives / bribes & moving POL https://discord.gg/thales 2024-03-07

Simple Summary

Additional tapering of incentives and bribes across existing incentivized LPs & moving the Aerodrome USDbC/THALES POL position to the WETH/THALES pool.

Abstract

This TIP proposes additional tapering of AMM incentives and bribes across all existing incentivized LPs and moving the existing Aerodrome USDbC/THALES POL position to the WETH/Thales pool.

Rewards:

Current reward structure is:

  • Optimism Arrakis THALES/WETH pool incentives: 18,500 THALES + 1,000 OP per week
  • Optimism Velodrome THALES/WETH pool bribes: 5,500 THALES per week
  • Base Aerodrome THALES/WETH pool bribes: 5,000 THALES per week
  • Arbitrum Camelot THALES/WETH pool incentives: 5,000 THALES per week

New reward structure to be:

  • Optimism Arrakis THALES/WETH pool incentives: 15,000 THALES + 500 OP per week (30% reduction in $)
  • Optimism Velodrome THALES/WETH pool bribes: 5,000 THALES per week (~10% reduction in $)
  • Base Aerodrome THALES/WETH pool bribes: 5,000 THALES per week (not cut)
  • Arbitrum Camelot THALES/WETH pool incentives: 4,500 THALES per week (~10% reduction in $)

These emissions are to run for 8 weeks until further revaluation.

POL Position:

The incentives for the USDbC/THALES POOL on Aerodrome were deprecated per TIP-180 - nevertheless we still hold a ~$200K POL position in this pool. For efficiency reasons, it makes sense to move this POL to the WETH/THALES pool which we bribe.

Motivation

Rewards

Currently, THALES onchain liquidity is relatively deep and more than sufficient, at over $4.5m TVL. This includes Protocol Owned Liquidity. Due to recent $OP, $AERO and $VELO price action and the resulting very favorable APYs for LP's allows us to further reduce the incentives. By moving the POL positon on Aerodrome to the WETH pool, we are diluting existing LPs in this pool. To avoid major reductions, I suggest not changing the incentives for this pool at present.

POL Position

Our POL position in the USDBC pool makes little sense, as we no longer actively incentivize this pool. A move of this position to the WETH pool makes sense, as this is the only pool that the treasury is bribing on Aerodrome and therefore the POL position can also benefit from this.

Specification

Rewards

This TIP entails the Thales Protocol DAO and Treasury DAO to facilitate the following emissions:

  • Optimism Arrakis THALES/WETH pool incentives: 15,000 THALES + 500 OP per week
  • Optimism Velodrome THALES/WETH pool bribes: 5,000 THALES per week
  • Base Aerodrome THALES/WETH pool bribes: 5,000 THALES per week
  • Arbitrum Camelot THALES/WETH pool incentives: 4,500 THALES per week

The incentives in this proposal are to be valid for a period of 8 weeks from implementation until further revaluation.

POL Position:

  • Move the USDbC/THALES POL position into the bribed WETH/THALES pool on Aerodrome.

Implementation

n/a

Copyright

Copyright and related rights waived via CC0.