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 incentives allocation
| Inflows (Budget) | Outflows | |
|---|---|---|
| SWISE liquidity pool | 770,000 SWISE | 800,000 SWISE |
| osETH liquidity pools | 6,000,000 SWISE | 6,050,000 SWISE |
| SLC compensation | 82,945 SWISE | 82,945 SWISE |
| Total | 6,852,945 SWISE | 6,932,945 SWISE |
Starting SLC Safe Balance: 12,575,240 SWISE (19-Mar-2024)
Ending SLC Safe Balance: 5,642,295 SWISE (17-Apr-2024)
Whilst osETH liquidity has remained solid over the past month, the cost of liquidity has dramatically increased month on month due to two factors:
- A) The drop in SWISE price with respect to ETH over the past several weeks.
- B) The drop in capital efficiency in the Balancer and Curve incentives markets. Historically, StakeWise was getting between 1.2-1.3x capital efficiency by incentivising BAL and CRV emissions, these markets are now below 1x capital efficiency. Consequently, pure SWISE emissions were used over the past month.
The SLC is carefully monitoring these costs and will adjust liquidity targets should market conditions not improve in the near future.
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.
Proposed budget for Month 7
| Budget | |
|---|---|
| SWISE liquidity pool | 800,000 SWISE |
| osETH liquidity pools | 6,300,000 SWISE |
| SLC compensation | 144,300 SWISE |
| Total | 7,244,300 SWISE |
SWISE liquidity pool
The aim is to maintain current liquidity, requiring 800k 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 6.3M SWISE per month at current market prices.
SLC compensation
$5k in SWISE @ 0.03465 USD per SWISE (30d avg) => SWISE 144,300 (as approved by the DAO during the implementation of the SLC).