# Proposal to incentivize stETH/ETH liquidity on Uniswap

**URL:** https://research.lido.fi/t/proposal-to-incentivize-steth-eth-liquidity-on-uniswap/82
**Category:** Proposals
**Created:** [December 30, 2020, 3:36am UTC](https://research.lido.fi/t/proposal-to-incentivize-steth-eth-liquidity-on-uniswap/82 "2020-12-30T03:36:26Z")
**Posts on this page:** 5
**Page:** 1

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### Author: ![sandrofski](https://avatars.discourse-cdn.com/v4/letter/s/8797f3/32.png) [@sandrofski](https://research.lido.fi/u/sandrofski)
#### Post date: [December 30, 2020, 3:36am UTC](https://research.lido.fi/t/proposal-to-incentivize-steth-eth-liquidity-on-uniswap/82/1 "2020-12-30T03:36:26Z")

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I propose to set apart a % of LDO to incentivize stETH/ETH LP providers on Uniswap. Currently, LPs are providing liquidity for stETH, while incurring a significant risk of IL, and for little rewards as the LP fees are rather low.

One idea for a sustainable liquidity mining program would be to assign LDO rewards based on the lock duration of the LP tokens (i.e. if I lock my stETH/ETH LP tokens for 1 year, then rewards should be higher than locking for 1 week). A simple farm contract could be created for this (happy to help).

This would further incentivize liquidity on the stETH/ETH pair, until a point in time where Curve _might_ accept it.

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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: [December 31, 2020, 9:53pm UTC](https://research.lido.fi/t/proposal-to-incentivize-steth-eth-liquidity-on-uniswap/82/2 "2020-12-31T21:53:53Z")

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If I am not mistaken, isn’t there _not_ a significant risk of IL?

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### Author: ![mamedai](https://avatars.discourse-cdn.com/v4/letter/m/f05b48/32.png) [@mamedai](https://research.lido.fi/u/mamedai)
#### Post date: [January 1, 2021, 9:52am UTC](https://research.lido.fi/t/proposal-to-incentivize-steth-eth-liquidity-on-uniswap/82/3 "2021-01-01T09:52:14Z")

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Why don’t we request to be added to the sushi menu of onsen?

1. Assign LDO+sushi to important stETH/ETH liquidity.
2. request allocate sushi to stETH/LDO.

I don’t think it is necessary to allocate LDO to LDO liquidity.  
L2 loopring should also be considered.

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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: [January 2, 2021, 4:29pm UTC](https://research.lido.fi/t/proposal-to-incentivize-steth-eth-liquidity-on-uniswap/82/4 "2021-01-02T16:29:45Z")

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Uniswap is not safe to trade stETH on bc it’s a rebasable token. I like the LP locking idea a lot though.

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### Author: ![BMMC](https://avatars.discourse-cdn.com/v4/letter/b/a5b964/32.png) [@BMMC](https://research.lido.fi/u/BMMC)
#### Post date: [January 5, 2021, 2:19pm UTC](https://research.lido.fi/t/proposal-to-incentivize-steth-eth-liquidity-on-uniswap/82/5 "2021-01-05T14:19:14Z")

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Can you explain this? Will all stETH not receive rebase rewards?
