By mid-December, the 30-days reward periods both for Curve stETH/ETH and Sushi wstETH/DAI liquidity pools will expire (on 11th and 16th of December respectively).
For almost a year, Curve pool used to be the foothold of stETH/ETH peg and keeps maintaining it steadily. It’s also the deepest pool across DeFi at around $5 billion TVL at the moment. Keeping it stable and safe is of paramount importance to the protocol, so we propose continuing the LP rewards with the same amount of 3,550,000 LDO for the next 30-days rewards period starting on December 11th.
However, there is an ongoing discussion in the community about more capital efficient options of Curve pool incentivization, e.g. Convex bribes, Olympus Pro bonds, timelocking LP rewards, etc. Please, feel free to come up with more ideas.
Sushi pool launched in the late summer’21 and has been consistently incentivized with 200,000 LDO per month since then.
As recently shown in @vsh’s analysis, these incentives look excessive for now. Compared to WETH/DAI pool, the wstETH/DAI pool appears to be roughly 5 times less useful for trading.
Similarly to 1inch stETH/DAI pool, we propose reducing monthly rewards for Sushi wstETH/DAI LP to 50,000 LDO for the 30-days period starting on December 16th.
Please comment on this post if you disagree with these proposals. If approved by the community, both allocations will be handled via the new Easy Track functionality over the next week.