# \[reWARDS\] July '22 Budget **URL:** \ **Category:** General\ **Created:** [July 1, 2022, 4:11pm UTC](https://research.lido.fi/t/rewards-july-22-budget/2515 "2022-07-01T16:11:25Z")\ **Posts on this page:** 1\ **Showing post:** 14
**Author:** ![Chuck](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/chuck/32/32_2.png) [@Chuck](https://research.lido.fi/u/Chuck)\ **Post date:** [July 4, 2022, 11:56pm UTC](https://research.lido.fi/t/rewards-july-22-budget/2515/14 "2022-07-04T23:56:48Z")
> [@Chuck](#): > > Let us calculate how much liquidity is required for a **1,000 stETH** swap based on different conditions. > > | Liquidity(in ETH) | Price Slippage | Price Slippage | Price Slippage | > | --- | --- | --- | --- | > | | | | | > | | 1:1 weight(steth-weth) | 3:1 weight(steth-weth) | 5:1 weight(steth-weth) | > | 50,000 | 0.04% | 0.073% | 0.15% | > | 100,000 | 0.02% | 0.04% | 0.076% | > | 150,000 | 0.015% | 0.02% | 0.054% | > > Set **5,000 stETH** as the benchmark, we will have the following result. > > | Liquidity(in ETH) | Price Slippage | Price Slippage | Price Slippage | > | --- | --- | --- | --- | > | | | | | > | | 1:1 weight(steth-weth) | 3:1 weight(steth-weth) | 5:1 weight(steth-weth) | > | 50,000 | 0.2% | 0.43% | 0.79% | > | 100,000 | 0.1% | 0.21% | 0.38% | > | 150,000 | 0.06% | 0.1% | 0.24% | Look through the above tables, we can figure that the unbalance of the pool assets is one of the most influential factors of price slippage. About 4 times of liquidity(ETH and stETH combine) will be needed to keep a 1000 stETH transaction at the same slippage while pool weight went from 1:1(stETH-WETH) to 3:1. So, keeping the LP APR at a level of more attractive compared to other ETH yield generated options and less attractive compared to the stETH staking yield is very important to build healthier liquidity pools. Fundamentally, our **incentive target is to encourage more ETH to join in the pool, not more stETH.** --- _[View the full topic](https://research.lido.fi/t/rewards-july-22-budget/2515)._