Continue LP Rewards for Curve and Balancer

Proposals
1

LDO rewards for stETH/ETH curve LPs are set for expiration on September 11th.

stETH to ETH concentrated pools (one on Curve, one on Balancer) are together the largest liquidity pool in all of DeFI, and that is paramount for stETH as it is a precursor to listing on DeFI money markets. It’s grown a lot in the last month, but the total amount of stETH had grown significantly as well, so I think we need to continue the incentives roughly as they were.

As seen on analytical dashboard, on balancer we currently get more liquidity and trading volume (though most of that is arbitrage with Curve) per LDO spent than on Curve. I suggest moving 200k LDO of incentives from Curve to Balancer, for a total number of:

3550000 LDO for the next 30-days period of incentivizing Curve LP
300000 LDO for the next 30-days period of incentivizing Balancer LP

The original proposal for LDO Curve incentive can be found here: Incentivizing Curve stETH liquidity with LDO .

If that proposal is at all controversial to anyone, please express your opinion and I’ll start a snapshot signalling poll; otherwise, it will be included in the weekly Lido DAO Omnibus vote set for Thursday, September 9th, 2021.

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3

This proposal mentions 300k LDO for Balancer but the vote approved today (#89) says 75k.
Trying to understand where that big difference came from, did I miss any discussion?

Thanks

4

Hey, there is a misunderstanding because of how the Balancer rewards work.
The rewards for this LP are weekly, and we have built a rewards manager contract to issue an allowance for X LDO per week, but we allocate funds once per month (per 28 days to be precise). We have allocated 300k in voting #88, and what you see in voting #89 is tuning the allowance rate (how much LDO the contract will be able to spend per week), since we have increased the LP rewards for Balancer.
Hope this makes sense, feel free to ask me if you want more details.

5

Gotcha, makes perfect sense, appreciate the reply.

1 Like