LDO rewards for both Curve stETH/ETH and Balaner v2 wstETH/WETH liquidity pools will expire on October 11th.
Last month, we have moved 200,000 LDO rewards from Curve LP to Balancer v2 liquidity mining program. According to our analytical dashboard, this resulted in around 25% Balancer LP growth. You can read more on the motivation behind this decision in this proposal.
Now we propose to continue rewards for both pools at the same level:
- 3,550,000 LDO for the next 30-days period of incentivizing Curve LP
- 300,000 LDO for the next 4-weeks period of incentivizing Balancer LP
If you have any objections about these rewards allocations, please comment here, and we can run a snapshot voting. Otherwise, it will be included in the weekly Omnibus vote on Thursday, October 7th.
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Quick question about the LM, what is the target TVL we wish to achieve with this extension?
IMO getting wstETH on AAVE and Compound seems to be the next step in DeFi composability and the way to go for further increasing TVL. Do we really need more LM at this stage? If we are really looking to extend this programme, perhaps we can find more cost-effective ways to do so such as Olympus Pro bonds (purchase discounted LDO with stETH/ETH LP).
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I agree that at this point we do not need to further grow the LP depth, but we want to maintain it, and we want to have liquidity diversified. Curve and Balancer pools are the largest stETH pools and the overall asset’s liquidity depends on them heavily. AAVE and Compound (and also Maker) integration options require stETH/wstETH being a highly liquid asset, so in my opinion, it is very important to have pools incentivized.
Olympus Pro bonds look interesting, this option is worth exploring as well.
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