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 | 860,000 SWISE | 860,000 SWISE |
| osETH liquidity pools | 6,720,000 SWISE | 6,720,000 SWISE |
| SLC compensation | 182,640 SWISE | 182,640 SWISE |
| Total | 7,762,640 SWISE | 7,762,640 SWISE |
Starting SLC Safe Balance: 12,926,940 SWISE (16-May-2024)
Ending SLC Safe Balance: 5,164,300 SWISE (12-Jun-2024)
The underperformance of SWISE with respect to ETH since the start of the year, and the negative economics for bribing (where $1 spent on bribes yields less than $1 in incentives), continued to result in elevated incentive costs throughout the month of May. Liquidity remained strong, however, and remains a key piece of the puzzle to enable growth in the StakeWise protocol.
The cost of incentives is expected to decrease following the improvement in SWISE price and the continued growth of the protocol through StakeWise’s strong B2B partnerships, with the latest announcement alongside MetaMask being one example of this.
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 9
| Budget | |
|---|---|
| SWISE liquidity pool | 830,000 SWISE |
| osETH liquidity pools | 5,880,000 SWISE |
| SLC compensation | 165,295 SWISE |
| Total | 6,875,295 SWISE |
SWISE liquidity pool
The aim is to maintain current liquidity, requiring 830k 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 5.9M SWISE per month at current market prices.
SLC compensation
$5k in SWISE @ 0.03025 USD per SWISE (30d avg) => SWISE 165,295 (as approved by the DAO during the implementation of the SLC).