On November 8th, LDO rewards for Balaner v2 wstETH/WETH LP will expire, and Curve stETH/ETH LP rewards are set to expire on November 10th.
From our dedicated analytical dashboard, it looks like the current incentivization level helps maintain consistent growth of both pools. Liquidity in the pools costs Lido around the same LDO amount per month (per $1000) in Curve and in Balancer, with Curve being just a little bit more cost-efficient. Great thanks to Lido analytical team for putting this dashboard together
Based on this data, we propose to continue rewards for both pools at the same level:
3,550,000 LDO for the next 30-days period of incentivizing Curve LP
300,000 LDO for the next 4-weeks period of incentivizing Balancer LP
If you have any objections about these rewards allocations, please comment here, and we can run a snapshot voting. Otherwise, it will be included in the weekly Omnibus vote on Thursday, November 4th.
How about we increase the rewards a little bit on the curve pool to become competitive with other protocols? This should help with the pool being off peg.
This part of the continuous reward should set some lock-up period, to give confidence to the secondary market. LDO currently does not see how to capture the value of the protocol beyond the bonus release and December large unlock.
This part of the continuous reward should set some lock-up period, to give confidence to the secondary market. LDO currently does not see how to capture the value of the protocol beyond the bonus release and December large unlock.
Thank you, that’s an interesting point, need to think a bit further about that.
Before the Merge, the Curve pool (and the Balancer pool) will most probably keep being the foothold of stETH peg, so we need to be very careful around these incentives.
Over the past few months, we have lowered the incentives on Curve, and it didn’t hurt the peg by itself. So a lock-up period (or even further incentives decrease? or both?) might actually be a good idea for now.
