[reWARDS] August '22 Budget

August Budget Post

Welcome to the August budget.

This post will be broken into a few sections detailed below and will be open for community feedback for 3 days (72 hours). After which, if there is no contention, will be acted upon.

Updates for each month will be provided in the corresponding monthly threads.

The sections are as follows:

  • Operational updates
  • Budget and breakdown
  • Reasoning
  • New experiments
  • Operational Goals

Operational Updates

Due to the ongoing operational complexity we have increased the approved LDO in the budget by a flat ~10%. The reason is to provide a buffer between monthly budget updates until we can get additional resources to streamline the process (ongoing). Historically this is significantly more than required and will be adjusted over time downwards.

We have included budgeted vs actual spend for August and will continue this process going forward.

@carvas @Chuck and @McNut been contributing on reWARDS V2 reporting and accountability processes with the committee. We will be posting an update on the work this week with learnings, goals and timelines.

The addition of transaction tracking on a public site with addresses for the community to track on chain was delayed to this month due to additional priorities.

Budget and Breakdown

The Auguest budget calls for 4,633,200 LDO.

4,212,000 LDO distributed across the following pools and networks with the remaining 421,200 LDO held for unaccounted needs during the month.

The colors correspond to an increase or decrease of LDO for the month.
edit: I mixed up the red (increase) and green (decrease) :roll_eyes: this month.

An easier to view PDF is provided:

Aug rewards budget 2022.pdf

Reasoning and Analysis

We are continuing to experiment with bribes and indirect incentives to increase capital efficiency in the V2 work listed above.

Solana

Continuing to round out the defi integrations and are finalizing work on our SDK for easier integrations with partners.

Ethereum

Notable changes

  • We have redirected all Balancer direct incentives to bribes due to efficiency.

L2 - Arbitrum & Optimism

  • Pending an audit, we expect to launch on L2s this month with the priority being AMMs/DEXs for user experience and deeper integrations next month.

Kusama (KSM)

No updates.

Polkadot (DOT)

No updates

Polygon (MATIC)

Chainlink oracles were approved and have unblocked work on Aave.

Uni V3 pool is live and already performing better than expected in capital efficiency.

Launched vaults with Beefy finance which have been highly effective in helping users get involved with Polygon defi.

New Experiments

The continued focus is on optimization models this month with a focus on Curve and Balancer ecosystems.

As we now have a functional Uni V3 pool on Polygon we will be exploring adding additional pools on ETH mainnet and L2s.

Operational Goals

The main priority in August is standing up V2 optimization and start using that to inform decisions in September. An update will be posted this week.

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Is it July or August here?

seeing more projects coming to Lido eco.

August, typo in the post, will correct — thank you for the tip =)

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@gin403 Corrected! Thank you for catching that

Update for Solana budget for Larix protocol:

Period of rewards will be 4th Aug-10th sep(included), 38 days
357 LDO per day, so 357*38=13566 LDO. Means that we will increase our rewards amount by 3566 LDO.

357 LDO are calculated based on 28 days period and 10K LDO budget for rewards.

The reason why we decided to extend the period is need time to prepare budget and transfers in the beginning of each month.

Update for ETH budget for Idle Finance.

They have hit a TVL milestone of $50M and 30K stETH locked in platform.
With those considerations we need to adjust the budget by 10,600 LDO.
This is within the scope of the buffer and does not require an additional treasury motion.

The pdf isn’t working for me. Any guesses?

Thanks for the breakdown and transparency on this. Could we include a breakdown with total spend per network ecosystem in this spreadsheet/PDF? Would be helpful to see that imo.

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