[reWARDS] January ‘23 Budget

Welcome to the first reWARDS budget for 2023!

Details are below as usual. This proposal will be open for community feedback for 3 days. After which, if there is no contention, it will be acted upon.

If there are budget updates throughout the month, they will be posted under this topic for transparency.

The sections are as follows:

  • Operational Updates and Topics
  • Budget and breakdown
  • Reasoning
  • New experiments

Operational Updates and Topics:

  • Higher level table of networks’ allocations and a .csv file with the specific pools/integrations by network and platform. No updates in the general structure this month as there have been no changes chains-wise.
  • Public dashboard monitoring Lido’s reWARDS multisigs available here, in the public LidoAnalytical dune. Transactions are labeled to the best of our ability to make it easier for community auditoring.

Budget and Breakdown

The January’23 budget calls for 2,896,300 LDO. (Actual 2,633,000 + 10% buffer)

Remaining balances estimated at EOM (unspent and left in the different multisigs by the last day of December and usable for January’s spend, rounded to thousands):

  • Ethereum: 116,000 LDO
  • Solana: 138,000 LDO
  • Polygon: 100,000 LDO
  • Moonbeam (Polkadot): 34,000 LDO
  • Moonriver (Kusama): 0 LDO
  • Arbitrum: 25,000 LDO
  • Optimism: 22,000 LDO
  • Total: 435,000 LDO

Requested budget 2,462,000 (Budget Call - Remaining, rounded)

To be distributed across the following pools and networks with the buffer of 316,500 LDO held for unaccounted needs during the month.

The colors correspond to an increase or decrease of LDO for the month.
The detailed .csv file is provided here.



The gradual reduction in overall incentive spend that started in september is continued this month. The current liquidity depth for stETH is still over an order of magnitude greater than that of competing products, and sufficient to serve large participants, from treasury managers to integrations.

Furthermore, one of the goals for Q1’23 is to start having liquidity and pool usage on Uniswap v3, and many options have been explored for that. As such, a new line item has been added for general mainnet uniswap pools incentives.


We still continue incentives adjustment according to our TVL on Solana, amongst other metrics.

  • Together with protocols Solend and Synthetify we decided to stop with incentives as they need to recover after the FTX collapse;
  • We are continuously reducing incentives for Orca standard pools to redirect users to Whirpools.


No new protocols were added, only wstDOT Beamswap vault to grow and spread liquidity.

Also, incentives reductions took place and that lead to leftovers and adjusting LDO amounts spread will continue in January at around 20% cut size.


Solarbeam monthly budget was reduced to be aligned with market conditions and did not require having two month budget transferred in December as planned initially.


In December, Lido on Polygon implemented a strategy for sustainability and complies with DAO wide incentive reduction. Actual incentives were 30.77% lower than budgeted, as we focused on optimizing current pools and vaults. On top of that some strategies did not launch. The optimization process will reach its peak in January and is aligned with our strategy of deploying incentives in a sustainable manner during the bear market. For transparency in numbers, further 11.11% was decreased in January budget request.

Unfortunately, the deployment of Beefy concentrated liquidity vaults was delayed once again. This had a positive impact on our reductions as we were able to recycle some incentives for old vaults and stop emission of new ones. In addition, a snapshot failure for Aave wMatic parameter optimizations in December postponed our improvement plan to next year, resulting in 20k LDO being unused for lending incentivization. Once live, this will reduce borrow APY and allow us to utilize advanced DeFi strategies.

Overall, this resulted in 100k LDO being spent less than expected. In January, we will continue to prioritize capital efficiency and further reduce incentives emission for 25 000LDO more.

Arbitrum & Optimism

No specific comments.

New Experiments:

For this budget, a new model for balancing changes in incentives across the different chains and stAssets has been used. That model will continue to be improved on and should be quite comprehensive for the February budget.

Note: reWARDS budget allocations are not endorsements from Lido to any protocol or project and shouldn’t be seen, perpetrated or interpreted as that by any user or team.

Happy holidays to everyone and, as always, we appreciate all community feedback on this!


Hey guys,
Please note that we allocated 2,000 LDO (that we haven’t budgeted for) to Crema: 1,000 for the stSOL-SOL pool and 1,000 for the stSOL-USDC pool.

1 Like

What are the reasons of keeping Lido multichain considering the current environment? I can understand the emissions for ETH L2s, but I think the DAO should re-discuss the emissions on DOT/KSM/SOL/MATIC, which are almost 600k LDO per month.


A point to note is that they have been reduced, in this budget, much more in proportional terms than mainnet/L2 emissions, and will probably continue to be in the following one.

1 Like

I agree, at this point DOT/KSM/SOL should have 0 emissions or very close to it, the DAO is burning money.

  • Moonbeam (Polkadot): 34,000 LDO

what is the activity level on moonbeam? never heard of anyone using this chain

who decides on these rewards budgets? are there votes or anything of the sort?

also its not clear what the other 2,000,000 LDO are for? can this be explained better?

liquidity for $LDO is so thin, price keeps going down lol, massive VC unlocks coming, stani dumping lol, cobie gone, will the sell pressure ever end? casually another 2 million ldo for rapid dumping yay

1 Like

This point refers to what was left, rewards-wise, from the previous budget of that network. Unspent incentives that carry to the following month.

As of today there’s around $11M in stDOT TVL. Like mentioned on the budget and on the previous comment, incentives overall have been getting consistently reduced (Sep, Oct, Nov, Dec, to track progress). They are getting especially reduced on these lower usage/growth/tvl networks like you mentioned.

The way it works is that Lido has a reWARDS Committee of eight people who plan and propose these budgets to the DAO each month. Then the motions to fund the balances for each month’s incentives go through a governance process called EasyTrack, in which voters and the Lido DAO have the ultimate say and can object.

Most of these rewards serve to incentivize liquidity providers in stAsset pools. The deepest pools in DeFi are (w)stETH’s, making it the most liquid ETH liquid staking token. This is one of the key advantages because it ensures stakers can enter and exit stETH positions up to very large sizes and that the integrations (mostly as collateral) work and are useful.

Hope that helps and thanks for questioning


Hey guys, wanted to mention some more budget changes:

For Orca, total amount budgeted has been decreased to 11,000 LDO. Here’s the breakdown for the pools subjected to change:
stSOL-ETH 1500 → 0
stSOL-SOL(CL) 2000 → 1500
stSOL-USDC(CL) 2500 → 1500
stSOL-USDH(CL) 0 → 500
stSOL-USDT(CL) 1500 → 0
stSOL-wstETH 2000 → 0
stSOL-USDT(CL) 1500 → 0

Raydium: 13,000 total → 12,500 total
stSOL-SOL(CL) 1750 → 1500
stSOL-USDC(CL) 1750 → 1500

Tulip: 5,000 total → 3,000 total
Lending 4,000 → 3,000
Covered calls 1,000 → 0

Mercurial: 15,000 → 14,000



one suggestion:
could we add the official site of each project into csv. For some new integrations, it’s hard to locate the site as a user. Also, it could protect users from going to the wrong dapps.

1 Like

DAO could be more analyse about the emissions on SOL.

This makes sense, good suggestion!


950 LDO, not present in the original budget, will be allocated to an stMATIC campaign on Zerion. This was green-lighted by the network manager and committee and is covered by the reWARDS buffer. cc @Marin @Walshy


Some more changes to the January budget the SOL network:

  1. Francium: 0 → 1000 LDO
  2. Port: 2000 → 6000 LDO


Confirmed. :pray:

Thank you.

1 Like

Update for the January budget for Lido on Polygon.

As Aave v3 on Polygon still does not have updated wMatic parameters we did not supply the 10k LDO as incentives.

We used 905 LDO from the Aave budget to fund a Zerion staking & marketing campaign.

9095 LDO will be used in the February budget.

Thanks all!