Ok, let’s combine these related discussions in this post.
Let’s do a little napkin math. Lido wields ~25k ETH in Treasury (the exact distribution & targeting for the funds is nuanced, but let’s skip that discussion). By the current price, it’s ~$30m. reWARDS monthly budget ~4.5m LDO, $2.6m, making the whole Treasury worth 1 year of incentives, barring all the other costs. At the same time, Lido Agent holds ~$94m worth of LDO, making this significantly better source for incentives — as long as Lido does need to provide those.
How did you work out the number ‘$2.6m’ or ‘4.5m LDO’ is needed? What if the $LDO price goes up 3X tomorrow, does that mean the whole Treasury is worth 3 years of incentives?
Considering that our incentive is targeted on steth-weth liquidity pool and there is huge volatility on LDO to WETH exchange rate, I have proposed that using WETH or stETH instead of LDO for LP incentive, which would bring more stable return to the LPs. How do you draw a conclusion that ‘making this(using LDO as incentive token) significantly better source for incentives’? Have you ever thought about whether ‘$2.6m’ is actually needed?