Incentivized LDO/stETH pool

There’s not much liquidity for LDO on dexes at all. No listings on major cexes. Counter to this CEX proposal (Proposal to incentivize CEX listings) I think it’s more important to deepen liquidity on dexes, since Lido is all about decentralization. There was incentivized LDO/stETH pool on 1inch. Now there is another incentivized pool on 1inch for stETH/DAI. Maybe it’s time to revive 1inch LDO/stETH pool? And maybe 1inch guys will fork out some tokens together with lido. Same double incentives as in stETH/DAI pool, just lesser amount.

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There’s LDO/WETH (wrapped ETH) pool on Balancer:

Incentives are minimal there and only in BAL.
6M$ of liquidity and APR is already down to 20%

I agree and it should be easy to implement as we have done this before:

I would suggest LDO seeking for more sustainable approach to liquidity on DEX as opposed to doing a perpetual pool2 LM programme. We can rectify the liquidity situation now with a temporary pool2 programme for a short duration of 1 month, but seek out other approaches in the meantime. What do y’all think?

2 suggestions:

  • LDO treasury will sell discounted LDO (10% off 3-days TWAP?) to bonds purchasers on Olympus Pro. Bonds are only purchasable using LDO/ETH LP tokens on SushiSwap, hence increasing the liquidity depth for LDO/ETH pool.
  • LDO treasury will purchase TOKE to stake and bid for liquidity in the C.o.R.E reactor. I see that LDO is already a candidate but it is not receiving enough votes to qualify yet as only top 5 voted protocols will win the liquidity.

What would be a good liquidity for LDO? Why current liquidity is not that? Unlike in the beginning of the year, there’s more than half a million $ deep to move 2% pool of liqiluidity on AMMs that can facilitate, going by historical charts on coingecko, 10-15m of trading activity per day when it’s needed.

150k$ sell on 1inch moves price by 2.5%

What’s the point of having LDO in the tokemak reactor?

Unlike beginning of the year, there are much more pool1s yielding free LDO. Maybe 5 pools on Ethereum and 4 or something pools on Solana. All giving away LDO tokens. Farmers can’t stake LDO to receive platform fees. Can’t put them in pool2. If not interested in governance - selling is the only way. Low liquidity with a lot of pool1 and no staking/pool2 → price go down bad IMO.

It is basically bidding for liquidity. All the staked ETH/USDC/USDT etc. in Tokemak C.o.R.E will be channeled to the top 5 voted protocol tokens LPs. That way we will have LDO/ETH, LDO/USDC, LDO/USDT pool all filled.

There’s a sizeable sushiswap pool and less sizeable balancer one as well.

Anyway, currently liquidity mining rewards/month are less than in the beginning of the year - used to be around 5m LDO and much larger share of market cap then.