Intro
This is a proposal to allocate SWISE from the StakeWise DAO Community Treasury to the StakeWise Liquidity Committee to be used solely to incentivise the liquidity ecosystems of all StakeWise tokens. Please take the time to review the report from the previous month and the proposed budget for the upcoming month before voting. The vote is live and can be found here.
For a high-level overview of how StakeWise DAO’s SWISE emissions have evolved over the years, see the following chart:
Report on last month’s incentive allocation
| Inflows (Budget) | Outflows | |
|---|---|---|
| SWISE liquidity pool | 830,000 SWISE | 830,000 SWISE |
| osETH liquidity pools | 5,880,000 SWISE | 5,880,000 SWISE |
| SLC compensation | 165,295 SWISE | 165,295 SWISE |
| Total | 6,875,295 SWISE | 6,875,295 SWISE |
Starting SLC Safe Balance: 12,039,595 SWISE (13-Jun-2024)
Ending SLC Safe Balance: 5,164,300 SWISE (10-Jul-2024)
Last month’s incentive spending went exactly as planned and maintained strong levels of osETH liquidity across all pools. This liquidity unlocked yet another tier 1 DeFi integration - adding osETH as a collateral asset on Compound.
Liquidity remains a major cost to the DAO, and the SLC is actively looking into how to reduce this cost while maintaining quality DeFi integrations for osETH.
osETH liquidity pools
Liquidity levels remained strong across all mainnet pools, with no major capital inflows or outflows to report.
osETH launched on Arbitrum last month and its liquidity has gotten off to a strong start. osETH commands the 3rd largest pool on Balancer and alongside its ancillary pool on Ramses, osETH’s liquidity has allowed Chronicle to build a quality price feed to enable integrations across the Arbitrum ecosystem. StakeWise DAO will continue to receive ARB tokens as part of its LTIPP grant for a couple more months to maintain this liquidity at no cost to StakeWise.
SWISE liquidity pool
There are no major inflows or outflows to report.
Proposed budget for Month 11
| Inflows (Budget) | |
|---|---|
| SWISE liquidity pool | 860,000 SWISE |
| osETH liquidity pools | 6,080,000 SWISE |
| osGNO Liquidity pools | 500,000 SWISE |
| SLC compensation | 160,440 SWISE |
| Total | 7,600,440 SWISE |
osGNO liquidity pools
The launch of StakeWise V3 on Gnosis is imminent, with SWISE needed to help bootstrap the new liquidity pools on the Gnosis ecosystem. We are working closely with the Gnosis and Karpatkey teams to ensure that osGNO liquidity and utility are generated quickly, with the cost of liquidity being split 50/50 between StakeWise DAO and the Karpatkey team. 500k SWISE is requested to kickstart the osGNO liquidity over the following month.
osETH liquidity pools
The current liquidity depth is strong vs the overall TVL of StakeWise V3 and should be maintained. The expected cost for doing so is around 6M SWISE per month at current market prices.
SWISE liquidity pool
The aim is to maintain current liquidity, requiring 860k SWISE per month at current market prices.
SLC compensation
$5k in SWISE @ 0.03116 USD per SWISE (30d avg) => SWISE 160,439 (as approved by the DAO during the implementation of the SLC).