This is the detailed update for June rewards, following the initial governance motion to fund them that happened at the end of May. Details, comments and updates are below as usual.
As always, if there are budget updates or changes throughout the month, they will be posted under this topic for transparency.
The sections are as follows:
- Overall Updates
- Budget and breakdown
- Network Specific Comments
Overall updates
- This month’s reWARDs budget falls under an overal rewards cap set in the [Lido-v2] Ongoing Grant Request of up to 4m DAI equivalent.
- Importantly, this is the first rewards month in which the distributions will happen in wstETH, derived from the DAO’s fees, instead of LDO, as voted in the proposal linked above.
- The tokens for distribution in June (this outline) have already been authorized and sent to the ethereum reWARDs multisig via a previous governance motion and DAO vote. As such, this is an operational update to proposed distributions and other higher level notices – but not a proposal that will go into the EasyTrack governance motion as the previous rewards budgets.
Multisigs’ LDO Balances
- This time, the usual leftovers on the operational reWARDs multisigs at the end of every month won’t roll over to next month’s rewards needs, as they’re in a different denomination. They will instead be returned to the Lido DAO’s treasury. In June those returns will be executed on the multisigs with a respective update to be posted in this thread.
Budget and breakdown
Remaining balances at EOM (unspent and left in the different multisigs by the last day of May, rounded):
- Ethereum: 58,000 LDO
- Solana: 52,000 LDO
- Polygon: 6,700 LDO
- Arbitrum: 16,500 LDO
- Optimism: 3,900 LDO
- Total: 137,000 LDO
June’23’s budget called for 170 stETH. (Actual 157 + buffer) (already voted on and funded by a DAO vote). However, only 138 are proposed for distribution here with the current needs accounted for.
The detailed .csv file is provided here.
Aggregated view of June’s budget, in the different denominations aforementioned (download or zoom to view properly):
Network Specific Comments
Ethereum
- Withdrawals for stETH went live as part of the Lido v2 upgrade last month!
- Ever since the launch of stETH, secondary markets, mostly DEXes, were the only ways users had to exit their positions, which justified a larger reWARDs programs leading to the deep liquidity pools stETH has had for the past two years. From now on, a primary liquidity venue exists for stETH, in the form of deposits and withdrawals.
This, modulo the variable wait times from queues, can allow for effective liquidity of stETH to ETH at the 1:1 ratio, independently of the aforementioned DEX pools. - As such, total rewards proposed spend is now a very small fraction of what is was in the past.
- Some less vital but important use cases for rewards continue to exist: Supporting lending/CDP integrations of (w)stETH with DEX pools to liquidate collateral against, bootsrapping integrations on expansions to new ecosystems, and fostering other DeFi growth strategies.
Solana
- Solana’s rewards budget proposal has been reduced to zero for June. The effectiveness of past rewards is unclear due to a DeFi and integrations ecosystem on solana that doesn’t have a lot of usage in this current market.
Arbitrum & Optimism
- OP rewards from the Optimism Foundation’s token grant have continued in May, and will continue in June. These have contributed towards increased adoption of wstETH on optimism. They have also indirectly contibuted towards votes at the Aave DAO to increase the supply caps of wstETH as collateral.
- In May, another snapshot vote passed that allows the reWARDs committee to receive the ARB DAO airdrop in a new multisig created for that purpose. As per the same vote, these tokens will be used to further pursue growth of wstETH in Arbitrum.
As always, any feedback, questions and comments are welcomed.