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id Title Status Author Description Discussions to Created
TIP-200 LP incentives tapering Draft MrBreakout (@MrBreakout) Tapering of incentives / bribes https://discord.gg/thales 2024-05-10

Simple Summary

Additional tapering of incentives and bribes across existing incetivized LPs.

Abstract

This TIP proposes additional tapering of AMM incentives and bribes across all exsiting incetivized LPs.

Current reward structure is:

  • Optimism Arrakis THALES/WETH pool incentives: 15,000 THALES + 500 OP per week
  • Optimism Velodrome THALES/WETH pool bribes: 5,000 THALES per week
  • Base Aerodrome THALES/WETH pool bribes: 5,000 THALES per week
  • Arbitrum Camelot THALES/WETH pool incentives: 4,500 THALES per week

New reward structure to be:

  • Optimism Arrakis THALES/WETH pool incentives: 10,000 THALES + no more OP rewards (Arrakis liquidity is quite low compared to other protocols)
  • Optimism Velodrome THALES/WETH pool bribes: 0 (100% reduction as Thales veVelo NFT accounts for 90% of the vote)
  • Base Aerodrome THALES/WETH pool bribes: 5,000 THALES per week (no change as Thales veAero NFT accounts for 30% of the vote only)
  • Arbitrum Camelot THALES/WETH pool incentives: 2,000 THALES per week (We could not reach the expected liquidity and want to move some incentives to new Ramses pool)
  • Arbitrum Ramses new THALES/WETH pool incentives kick off : 2,500 THALES per week (New pool to increase ARB liquidity)

These emissions are to run for 8 weeks until further revaluation.

Motivation

Current objective of this tapering is to be able to buyback and burn below the weekly inflation or getting close to that. Treasury is buying back and burning 1400 USD worth of thales tokens which is around 36k tokens at current price range. We are distributing 40k thales tokens for stakers and 29,500 thales tokens for LPs per week. Hence if we could cut the inflation half we could buyback and burn more than inflation.

Additionally, Arbitrum LP liquidity looking very thin which is currently around 300k USD worth compared to OP and Base chains. it would be beneficial to utilize new liquidity protocol 'Ramses' to try to increase liquidity by splitting current incentives on ARB chain.

if this proporsal gets approved, it will decrease %34 thales token inflation for LP distribution. Another TIP will be submitted to further decrease thales token distribution for stakers.

Specification

This TIP entials the Thales Protocol DAO and Treasury DAO to facilitate the following emissions:

  • Optimism Arrakis THALES/WETH pool incentives: 10,000 THALES
  • Optimism Velodrome THALES/WETH pool bribes: 0
  • Base Aerodrome THALES/WETH pool bribes: 5,000 THALES per week
  • Arbitrum Camelot THALES/WETH pool incentives: 2,000 THALES per week
  • Create a new Ramses THALES/WETH pool and add incentives : 2,500 THALES per week

The incentives in this proposal are to be valid for a period of 8 weeks from implementation.

Implementation

n/a

Copyright

Copyright and related rights waived via CC0.