Continue LDO rewards for stETH/ETH Curve LPs

Previous LDO rewards for stETH/ETH curve LPs will expire in 4 days. The proposal is to continue rewards with a slightly decreased rewards amount: 4.8M LDO for the next 30 days vs. 5M LDO in the past month.

The reasoning behind the reduction is as follows: we think that in the long period stETH usage should be shifted from 80% in Curve pool to more diversified DeFi usage, and are taking the first steps to that by reducing Curve incentives by 200k (to 4800k/month) and later distributing 200k of LDO to other DeFi applications of stETH.

The reason for not reducing the rewards by a more significant amount is that incentivizing stETH liquidity helps to maintain the 1:1 exchange rate which is very important for the protocol usability.

Onchain voting: Aragon

Original proposal for LDO Curve incentives: Incentivizing Curve stETH liquidity with LDO (tech details)


A gradual decrease of LDO rewards being allocated to the Curve pool sounds reasonable as incentivization for stETH in other DeFi projects increase.

A somewhat smaller LDO reward might also benefit the 1:1 exchange rate as lucrative usecases for stETH outside of Curve emerge.

1 Like

Low slope step down slash, that’s awesome!

Some projects slashed the incentive way too fast.