Curve Proposal: Continue LDO Reward Initiative With 3,750,000 LDO (0.375%)

The following is a proposal for the continuation of Curve LDO rewards to incentivise LPs in the stETH/ETH pool. The following rewards are to run from May 14th-June 14th, 2021.

The proposal is to continue rewards with a slightly decreased rewards amount: 3.75M (0.375) LDO for the next 30 day period. This is in contrast to 4.8M LDO distributed to LPs in the previous period.

The reason for reducing the LDO reward by 25% is increasing of LDO price and to allow for a larger allocation of LDO to UniV3 wstETH/ETH pool to allow for a replication of the success of the Curve stETH pool to different liquidity pools

The exact reward parameters for the UniV3 wstETH/ETH pool are not live and are yet to be voted on. More information related to this will be discussed and voted on publicly.

The Curve stETH/ETH pool remains of significant importance to the Lido DAO in how it incentivises liquidity and maintains a strong peg, and for this reason we see a continuation of the reward initiative as essential.

The proposal above will be voted on through a Lido DAO signalling vote conducted using Snapshot.

Additional Information:

The original proposal for LDO Curve incentives can be found here: Incentivizing Curve stETH liquidity with LDO (tech details).