# Proposal: LDO incentives to liquidity providers on LDO/stETH pair on 1inch exchange

**URL:** <https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274>\
**Category:** Proposals\
**Created:** [February 1, 2021, 7:35pm UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274 "2021-02-01T19:35:54Z")\
**Posts on this page:** 14\
**Page:** 1

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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:** [February 1, 2021, 7:35pm UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/1 "2021-02-01T19:35:54Z")

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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 provide 250,000 LDO tokens to be distributed to LP on 1inch exchange proportional to the amount of liquidity and timespan of providing it, counting from the period liquidity mining incentives on 1inch start and until 4 weeks pass.

250,000 is a nice round number chosen to roughly match the 1inch contribution, and Opium’s one from the other 1inch liquidity mining pool.

They will be distributed in form of a claimable airdrop 30 days from February 2 (so, on March 3, 2020). That way the devs have a day to compute a snapshot and deploy the airdrop contract, and the DAO will take a day to vote on the token transfer.

The continuation of this program, tweaking of numerical parameters, as well as making it into a more complex dual-incentive smart contract instead of an airdrop is to be decided later when the effects of the current liquidity mining program can be evaluated

**Discussion**

Points of interest:

- Combined with low float and high 1inch incentives this proposal can make LDO price very volatile short-term. This much is inevitable, but we can communicate that LDO trades are especially risky these days. How do we do it?

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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:** [February 2, 2021, 7:31am UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/2 "2021-02-02T07:31:49Z")

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Took liberty to create a snapshot vote for that:  
[https://snapshot.org/#/lido-snapshot.eth/proposal/QmPdKHatBiaZEAkJ384Gybq2xCzVSsa2CpFPmGRzudCdnG](https://snapshot.org/#/lido-snapshot.eth/proposal/QmPdKHatBiaZEAkJ384Gybq2xCzVSsa2CpFPmGRzudCdnG)

Please vote.

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**Author:** ![bobshayo](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/bobshayo/32/137_2.png) [@bobshayo](https://research.lido.fi/u/bobshayo)\
**Post date:** [February 4, 2021, 6:27pm UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/3 "2021-02-04T18:27:05Z")

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What’s the next step for this proposal?

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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:** [February 5, 2021, 8:12am UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/4 "2021-02-05T08:12:33Z")

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It’s a signal vote that passed yesterday. Next step is to prepare and distribute an airdrop on 3th of March.

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**Author:** ![SMullokandov](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/smullokandov/32/161_2.png) [@SMullokandov](https://research.lido.fi/u/SMullokandov)\
**Post date:** [February 13, 2021, 6:52pm UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/5 "2021-02-13T18:52:58Z")

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am participating on 1 inch Pool and farming stETH-LDO , my question is how can i claim my LDO reward ? Also I would like to know were will my Benefit from Eth2 staking rewards through exposure to stETH. be found?

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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:** [February 13, 2021, 6:53pm UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/6 "2021-02-13T18:53:23Z")

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LDO rewards will be distributed with a Merkle airdrop all at once.

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**Author:** ![AHurwitz](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/ahurwitz/32/164_2.png) [@AHurwitz](https://research.lido.fi/u/AHurwitz)\
**Post date:** [February 14, 2021, 4:50pm UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/7 "2021-02-14T16:50:05Z")

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Eth2 staking rewards are distributed on a daily basis to the stETH held.

_See [Tweet 2/10/21](https://twitter.com/LidoFinance/status/1359572414045294598)_

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**Author:** ![SMullokandov](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/smullokandov/32/161_2.png) [@SMullokandov](https://research.lido.fi/u/SMullokandov)\
**Post date:** [February 14, 2021, 5:03pm UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/8 "2021-02-14T17:03:10Z")

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I don’t see the distributed amount in my wallet on meta mask . I am currently participating in the 1 inch Pool and farming stETH-LDO ! Were should I check to see the balance update and at what time?

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**Author:** ![cryptodenier](https://avatars.discourse-cdn.com/v4/letter/c/76d3ee/32.png) [@cryptodenier](https://research.lido.fi/u/cryptodenier)\
**Post date:** [February 16, 2021, 7:54pm UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/9 "2021-02-16T19:54:30Z")

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You shouldn’t be seeing them just yet. They will be airdropped in the future (I believe, sometime in March) for you to claim. It does not automatically send it to your wallet.

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**Author:** ![SMullokandov](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/smullokandov/32/161_2.png) [@SMullokandov](https://research.lido.fi/u/SMullokandov)\
**Post date:** [March 3, 2021, 4:38am UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/10 "2021-03-03T04:38:40Z")

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when will we see the rewards ?

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**Author:** ![cryptodenier](https://avatars.discourse-cdn.com/v4/letter/c/76d3ee/32.png) [@cryptodenier](https://research.lido.fi/u/cryptodenier)\
**Post date:** [March 3, 2021, 7:43pm UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/11 "2021-03-03T19:43:35Z")

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An Aragon vote just passed, and soon you will be able to claim your LDO airdrop.

Check the vote [here](https://mainnet.lido.fi/#/lido-dao/0x2e59a20f205bb85a89c53f1936454680651e618e/vote/49/).

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**Author:** ![Munchausen](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/munchausen/32/198_2.png) [@Munchausen](https://research.lido.fi/u/Munchausen)\
**Post date:** [March 10, 2021, 2:54pm UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/12 "2021-03-10T14:54:19Z")

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Due to the fact that 1inch is the most known dex aggregator and provides a direct swap between ETH & stETH, I would like to ask & propose to relaunch the program.  
It does provide health for the stETH ecosystem as well.

Currently we see such a similar concept with OPIUM, which was extended as well.

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**Author:** ![Darkmoon](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/darkmoon/32/218_2.png) [@Darkmoon](https://research.lido.fi/u/Darkmoon)\
**Post date:** [March 27, 2021, 11:35am UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/13 "2021-03-27T11:35:17Z")

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Vote passed long time ago and no rewards yet. How and when we will able to claim LDO airdrop?

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**Author:** ![cryptodenier](https://avatars.discourse-cdn.com/v4/letter/c/76d3ee/32.png) [@cryptodenier](https://research.lido.fi/u/cryptodenier)\
**Post date:** [March 27, 2021, 9:09pm UTC](https://research.lido.fi/t/proposal-ldo-incentives-to-liquidity-providers-on-ldo-steth-pair-on-1inch-exchange/274/14 "2021-03-27T21:09:01Z")

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The rewards have already been out and already been mentioned in the Telegram channel. You can claim your rewards here: [https://1inch-pool-rewards.lido.fi/](https://1inch-pool-rewards.lido.fi/).
