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 discuss the proposed budget for the upcoming month. The snapshot to assign the budget is due to go live at 12pm UTC on Friday 10th.
Report on last month’s incentives allocation
| Month 1 Budget | Actual Spend | |
|---|---|---|
| Extending sETH2 farms | 3,300,000 SWISE | 2,475,000 SWISE |
| SWISE liquidity pool | 500,000 SWISE | 500,000 SWISE |
| osETH liquidity pools | 3,000,000 SWISE | 0 SWISE |
| SLC compensation | 76,089 SWISE | 76,089 SWISE |
| Total | 6,876,089 SWISE | 3,051,089 SWISE |
Extending sETH2 farms
The SLC has been deploying 750k SWISE per week into the sETH2-ETH pool and 75k into the sETH2-rETH2 pool, maintaining the same level of rewards as seen over the past several months. There have been no notable events in either of these pools to amend the level of incentives and the depth of liquidity remains strong.
osETH liquidity pools
None of the allocated osETH incentives budget has been used as the osETH liquidity pools are still in the process of getting created and gauges added. The SLC will transition incentives from the sETH2 farms to the new osETH pools when the time comes.
SWISE liquidity pool
The sETH2-SWISE pool historically received 500k SWISE in incentives per month. These incentives were migrated over to the new SWISE-ETH pool over multiple weeks and the migration is now complete. Since the start of the migration (9th October), ~$5M of liquidity has exited the sETH2-SWISE pool and ~$3.3M has entered the new ETH-SWISE pool. At this liquidity depth, the slippage should be adequate for ~90% of SWISE trades and is deemed satisfactory by the SLC. The new ETH-SWISE pool currently sits at around 12% APY.
Proposed budget for month 2
| Extending sETH2 farms | SWISE 3,300,000 |
| SWISE liquidity pool | SWISE 500,000 |
| osETH liquidity pools | SWISE 0 |
| SLC compensation | SWISE 81,625 |
| Total | SWISE 3,881,625 |
Extension of existing sETH2 farms
The sETH2 farms require extending up until the launch of the osETH liquidity pools. The SLC requests a further 4 weeks of emissions to cover this period. If the osETH pools go live before this 4 week period, any SWISE left over from the allocation to sETH2 pools will be accounted for in the following month’s budget request. The SLC proposes the same level of incentives as per the previous month for the sETH2-ETH and sETH2-rETH2 pools:
3,300,000 SWISE to be distributed across the pools in the following proportions:
- sETH2/ETH - 3,000,000 SWISE
- sETH2/rETH2 - 300,000 SWISE
SWISE liquidity pool
Suggest the same level of incentives as before, currently 500k SWISE per month.
New osETH liquidity pools
The SLC did not use any of the osETH incentives budget last month and consequently still has 3M SWISE on hand to incentivise osETH when it goes live. There is no need for more SWISE at this time.
SLC compensation
$5k in SWISE @ 0.06126 USD per SWISE (30d avg) => SWISE 81,625 (as approved by the DAO during the implementation of the SLC).