# Incentivized LDO/stETH pool

**URL:** <https://research.lido.fi/t/incentivized-ldo-steth-pool/1217>\
**Category:** Proposals\
**Created:** [October 1, 2021, 6:30pm UTC](https://research.lido.fi/t/incentivized-ldo-steth-pool/1217 "2021-10-01T18:30:12Z")\
**Posts on this page:** 11\
**Page:** 1

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**Author:** ![PerfectHatred1](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/perfecthatred1/32/576_2.png) [@PerfectHatred1](https://research.lido.fi/u/PerfectHatred1)\
**Post date:** [October 1, 2021, 6:30pm UTC](https://research.lido.fi/t/incentivized-ldo-steth-pool/1217/1 "2021-10-01T18:30:13Z")

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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](https://research.lido.fi/t/proposal-to-incentivize-cex-listings/1093)) 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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**Author:** ![skozin](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/skozin/32/44_2.png) [@skozin](https://research.lido.fi/u/skozin)\
**Post date:** [October 1, 2021, 6:35pm UTC](https://research.lido.fi/t/incentivized-ldo-steth-pool/1217/2 "2021-10-01T18:35:33Z")

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There’s LDO/WETH (wrapped ETH) pool on Balancer: [https://mobile.twitter.com/LidoFinance/status/1437472407049187329](https://mobile.twitter.com/LidoFinance/status/1437472407049187329).

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**Author:** ![PerfectHatred1](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/perfecthatred1/32/576_2.png) [@PerfectHatred1](https://research.lido.fi/u/PerfectHatred1)\
**Post date:** [October 1, 2021, 6:40pm UTC](https://research.lido.fi/t/incentivized-ldo-steth-pool/1217/3 "2021-10-01T18:40:39Z")

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

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**Author:** ![milkybarkidd](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/milkybarkidd/32/688_2.png) [@milkybarkidd](https://research.lido.fi/u/milkybarkidd)\
**Post date:** [October 1, 2021, 7:55pm UTC](https://research.lido.fi/t/incentivized-ldo-steth-pool/1217/4 "2021-10-01T19:55:56Z")

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

> [@Proposal: LDO incentives to liquidity providers on LDO/stETH pair on 1inch exchange](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274):
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> Overview 1inch, a liquidity aggregator and decentralized exchange, [is launching](https://1inch-exchange.medium.com/1inch-launches-quadro-farming-program-55eeb78e4bd6) LDO/stETH pair and starting a liquidity mining program on that pair. 1inch AMM has a [unique feature](https://1inch-exchange.medium.com/1inch-token-is-released-e69ad69cf3ee) to smoothen short-term volatility spikes and redirect trading return from them to liquidity providers, which leads to lower volatility and more stable price in the long term. To collaborate and reciprocate, I propose to combine this program with LDO incentives for providing liquidity as well. Proposal The DAO will p…

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**Author:** ![Snowsledge0x](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/snowsledge0x/32/623_2.png) [@Snowsledge0x](https://research.lido.fi/u/Snowsledge0x)\
**Post date:** [October 2, 2021, 1:50pm UTC](https://research.lido.fi/t/incentivized-ldo-steth-pool/1217/5 "2021-10-02T13:50:07Z")

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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](https://pro.olympusdao.finance/). 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. ![image](https://europe1.discourse-cdn.com/flex013/uploads/lido/original/1X/b4693f06f6a132ef1a0279d1731dbfba07491152.png)

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**Author:** ![vsh](https://avatars.discourse-cdn.com/v4/letter/v/b19c9b/32.png) [@vsh](https://research.lido.fi/u/vsh)\
**Post date:** [October 2, 2021, 2:22pm UTC](https://research.lido.fi/t/incentivized-ldo-steth-pool/1217/6 "2021-10-02T14:22:39Z")

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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.

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**Author:** ![PerfectHatred1](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/perfecthatred1/32/576_2.png) [@PerfectHatred1](https://research.lido.fi/u/PerfectHatred1)\
**Post date:** [October 2, 2021, 2:29pm UTC](https://research.lido.fi/t/incentivized-ldo-steth-pool/1217/7 "2021-10-02T14:29:42Z")

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

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**Author:** ![PerfectHatred1](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/perfecthatred1/32/576_2.png) [@PerfectHatred1](https://research.lido.fi/u/PerfectHatred1)\
**Post date:** [October 2, 2021, 2:30pm UTC](https://research.lido.fi/t/incentivized-ldo-steth-pool/1217/8 "2021-10-02T14:30:14Z")

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

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**Author:** ![PerfectHatred1](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/perfecthatred1/32/576_2.png) [@PerfectHatred1](https://research.lido.fi/u/PerfectHatred1)\
**Post date:** [October 2, 2021, 3:04pm UTC](https://research.lido.fi/t/incentivized-ldo-steth-pool/1217/9 "2021-10-02T15:04:38Z")

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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.

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<div class="post-metadata">

**Author:** ![Snowsledge0x](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/snowsledge0x/32/623_2.png) [@Snowsledge0x](https://research.lido.fi/u/Snowsledge0x)\
**Post date:** [October 2, 2021, 3:14pm UTC](https://research.lido.fi/t/incentivized-ldo-steth-pool/1217/10 "2021-10-02T15:14:09Z")

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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.

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**Author:** ![vsh](https://avatars.discourse-cdn.com/v4/letter/v/b19c9b/32.png) [@vsh](https://research.lido.fi/u/vsh)\
**Post date:** [October 3, 2021, 5:21am UTC](https://research.lido.fi/t/incentivized-ldo-steth-pool/1217/11 "2021-10-03T05:21:17Z")

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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.
