Key words
Liquidity mining, Rewards, Liquidity pools, Budget
Context
Several liquidity mining programs have already started including Sushi/Balancer Mainnet, and QuickSwap/Cometh Polygon.
Sushi is paid by the DAO every week, and Balancer is also paid by the DAO, but all the rewards have already been sent to the contract. On January 31st, the DAO will have spent 3.75M $PSP for these programs.
Cometh and QuickSwap rewards have been started by the ParaSwap foundation, which explains why there is 0 $PSP for the next 3 months on the tab. However, the DAO will need to fund it once the first program ends.
Goals
- Increase yearly Liquidity Mining to 42.58M $PSP max
- Start Liquidity Mining programs on BSC, Avalanche, Deversifi, Fantom and maybe other chains
Rationale
This proposal increases the Liquidity Mining program to 42.58M $PSP: 17.91% of the yearly budget split as detailed below :
Ethereum (17.33M $PSP, 7.29% budget)
The budget for the first quarter on Sushi (LP 50/50) is 5M $PSP, so 20M yearly. I propose to reduce it to 12M yearly (5.05%), so 500K $PSP per epoch could start mid-March.
The budget for the first quarter on Balancer (LP 80/20) is 1.25M $PSP, so 5M yearly, and considering that the Balancer pool could have more risks because of the safety module, we could easily increase the rewards to 5.33M $PSP yearly (2.24%), so 250K per epoch could start in April.
For the sidechains, I propose to allocate 1.65M $PSP yearly for each pool, and adjust every 3 months depending on the activity on each pool. Another interesting approach could be explored in a few months by creating gauges to start a $PSP war.
Polygon (5.45M $PSP, 2.29% budget)
As mentioned above, Cometh and QuickSwap rewards programs have been started by the ParaSwap foundation, but the DAO will need to fund it after 3 months. A Balancer 80/20 could be created and can be useful if we want to implement the safety module on Polygon in the future.
To maintain 1.65M/pool and because Polygon pools are important, the proposed budget is 200K $PSP/ month during 9 months for QuickSwap and Cometh pools, and 150K $PSP/month for all other pools, on sidechains/L2s.
Binance smart chain (3.3M $PSP, 1.39% budget)
There is a discussion with PancakeSwap and ApeSwap on BSC to create $PSP pools. There is currently no way to create a 80/20 LP on BSC.
The proposed budget is also 150K $PSP/month for each pool.
Avalanche (3.3M $PSP, 1.39% budget)
Since the community voted to deploy $PSP on Avalanche, after the budget is allocated we will start a discussion with Trader Joe and Pangolin DEX to create $PSP pools. There is currently no way to create a 80/20 LP on Avalanche.
The proposed budget is also 150K $PSP/month for each pool.
Fantom (3.3M $PSP: 1.39% budget)
ParaSwap is now deployed on Fantom, so we could start a discussion with SpookySwap and Beets.fi to create $PSP pools. The SpookySwap pool would be a 50/50 LP and the Beets.fi pool can be a 80/20 LP as it’s a Balancer fork.
The proposed budget is also 150K $PSP/month for each pool.
Deversifi (1.65M $PSP, 0.69% budget)
According to the PSP-IPΔ9, ParaSwap DAO made a loan of 2M $PSP to seed a $PSP/ETH pool matched with ETH owned by Deversifi. If the DAO gets 50% of the LP, we could avoid to stake it, ask Deversifi to do the same, and add a reward budget on this pool too.
The proposed budget is also 150K $PSP/month for the pool.
Other chains / Future $PSP pools (8.25M $PSP, 3.47% budget)
As there are many chains where ParaSwap isn’t deployed, we could add an additional LM budget starting in March. The proposed budget is 750K $PSP/month.
Voting options
- Accept to increase the Liquidity Mining DAO budget (42.58M $PSP, 17.91% budget)
- Refuse to increase the Liquidity Mining DAO budget (42.58M $PSP, 17.91% budget)
- Abstain
- Accept to increase the Liquidity Mining DAO budget (42.58M $PSP, 17.91% budget)
- Refuse to increase the Liquidity Mining DAO budget (42.58M $PSP, 17.91% budget)
- Abstain
0 voters
