Last week Lido dev team has set up new Curve factory pool “stETH Concentrated”, featuring high A coefficient (1000) to support the stETH/ETH exchange rate & give the way for leveraged stETH positions to be safely deleveraged.
To attract liquidity to the pool fast enough, the dev team has dedicated 1,000,000 LDO out of pocket as LP rewards for the first week. The reWARDS Committee started the motion to fund next week of LP rewards in the pool with 500,000 LDO, with the plan to allocate another 250,000 LDO in the week after that.
The funds for incentives are outside of budgeted reWARDS buffer for May, so the committee wants to measure DAO sentiment around the new pool incentivization. The current plan is to support the pool currently and gradually unwind the incentives, preventing the sharp liquidity movement. The short-term plan is to support the pool for the next two weeks (500,000 + 250,000 LDO), and to revise the situation on June reWARDS budget planning.
As mentioned above, the dev team has dedicated 1,000,000 LDO for incentives for the first week, as the situation had to be relieved faster than the regular reWARDS processes allows. We propose to refund the dev team for those expenses.
So, we’ll be doing:
- an easy track motion to fund week two in concentrated pool with 500,000 LDO - be sure to shoot it down if you disagree with that.
- an easy track motion to fund week three in concentrated pool with 250,000 LDO - again, feel free to object it if you disagree.
- a shapshot vote to decide on 1,000,000 LDO refund to the dev team. It is meant to cover first week’s incentives the team spent out of pocket. This vote, if passed, would then be executed as reWARDS committee Easy Track motion.