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.
osETH liquidity has remained solid over the past month and has allowed Redstone to launch their osETH-ETH price feed. This price oracle will unlock multiple integrations for osETH, some of which are due to go live in the coming days and weeks.
Throughout December, SWISE emissions continued to fall, however due to the recent underperformance in SWISE with respect to ETH, emissions are expected to increase for January. 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 incentives allocation
| Inflows (Budget) | Outflows | |
|---|---|---|
| SWISE liquidity pool | 500,000 SWISE | 850,000 SWISE |
| osETH liquidity pools | 2,700,000 SWISE | 2,071,322 SWISE |
| SLC compensation | 56,350 SWISE | 56,350 SWISE |
| Total | 3,256,350 SWISE | 2,977,672 SWISE |
Starting SLC Safe Balance: 6,886,297 SWISE (15-Dec-2023)
Ending SLC Safe Balance: 3,908,625 SWISE (18-Jan-2024)
osETH liquidity pools
Liquidity levels remained strong across all pools, with no major capital inflows or outflows to report.
SWISE liquidity pool
There are no major inflows or outflows to report. The larger than expected SWISE cost (850k) vs the budgeted amount (500k) is simply due to the timing of the SWISE-ETH pool’s incentives vs the timing of the report. Incentives are distributed 2 weeks at a time and this reporting period happened to fall across 3 sets of incentives deployment.
Proposed budget for Month 4
| SWISE liquidity pool | SWISE 600,000 |
| osETH liquidity pools | SWISE 3,500,000 |
| SLC compensation | SWISE 79,276 |
| Total | SWISE 4,179,276 |
SWISE liquidity pool
The aim is to maintain current liquidity, requiring 600k SWISE per month at current market prices.
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 3.5M SWISE per month at current market prices.
SLC compensation
$5k in SWISE @ 0.06307 USD per SWISE (30d avg) => SWISE 79,276 (as approved by the DAO during the implementation of the SLC).