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 (link) and the proposed budget for the upcoming month before voting. The vote is live and can be found (link).
For a high-level overview of how StakeWise DAO’s SWISE emissions have evolved over the previous months, see the following chart:
Report on the incentive allocation in November
| Inflows (Budget) | Outflows MTD | |
|---|---|---|
| SWISE liquidity pool | 860,000 SWISE | 860,000 SWISE |
| osETH liquidity pools (Mainnet) | 6,160,000 SWISE | 7,460,000 SWISE |
| osETH liquidity pools (Arbitrum) | 600,000 SWISE | 550,000 SWISE |
| osGNO Liquidity pools | 400,000 SWISE | 0 SWISE |
| SLC compensation | 249,690 SWISE | 0 SWISE |
| Team Reimbursement + Buffer | 4,613,420 SWISE | 0 SWISE |
| Other | 0 SWISE | 250,000 SWISE |
| Total | 12,883,110 SWISE | 9,120,000 SWISE |
Starting SLC Safe Balance: 1,990,000 SWISE (01-November-2024)
- Ending SLC Safe Balance: 100,000 SWISE (expected 30-Oct-2024)
- Actual SWISE balance on 30-Oct-2024 was 350,000 SWISE.
- 1,790,000 SWISE were obtained from the team on the 31st of October to maintain an uninterrupted flow of incentives.
- On 31st of October, 150,000 SWISE was sent to Arbitrum pools.
- Balance adjustments: Starting with 350,000, adding 1,790,000, and deducting 150,000 resulted in a total of 1,990,000 SWISE as of 1st November.
Ending SLC Safe Balance: 5,753,110 SWISE (expected 30-November-2024)
Notes
- 100,000 SWISE were sent to the Team safe on Gnosis Chain but not spent during the month of November.
- 100,000 SWISE was transferred to the Team Safe as reimbursement for the previous month.
- SWISE outflows for Arbitrum in November totaled 600,000 SWISE: only 550,000 SWISE were allocated. The remaining SWISE (50k) sits in the team multisig.
- The ‘Other’ cost line in the November incentive allocation report is calculated as follows: 100,000 + 100,000 + 50,000 = 250,000 SWISE.
osETH liquidity pools (Mainnet)
Liquidity levels remained strong across all mainnet pools with no major capital inflows or outflows to report.
osETH liquidity pools (Arbitrum)
The combined liquidity levels for osETH pools on Arbitrum have stabilized at approximately $1M. To boost engagement, the osETH-ETH pool on Balancer is allocated 100,000 SWISE incentives per week, while the osETH-wstETH pool on Ramses receives 50,000 SWISE incentives per week.
Given the current TVL levels in these pools, the SWISE incentives are projected to increase LPs’ APYs to approximately 20-25% for the osETH-ETH pool and 10-15% for the osETH-wstETH pool.
The team remains confident that these competitive APY levels will incentivize additional liquidity provision in both pools, driving an increase in TVL and fostering deeper liquidity for osETH on Arbitrum.
osGNO liquidity pools
The osGNO-GNO liquidity pool on Balancer has experienced a decline in TVL, dropping from approximately $5M in mid-November to $1.6M. This pool is not currently receiving SWISE incentives, as osGNO has depegged to a premium relative to GNO. It would not be prudent to incentivize further until the peg is restored and balance is achieved.
The team is actively monitoring the situation and plans to reintroduce SWISE incentives for the pool following the implementation of 100% LTV (Loan-to-Value) update on Gnosis Chain.
SWISE liquidity pool
There are no major inflows or outflows to report.
Proposed budget for December
| SWISE liquidity pool | 860,000 SWISE |
|---|---|
| osETH liquidity pools (Mainnet) | 6,160,000 SWISE |
| osETH liquidity pools (Arbitrum) | 600,000 SWISE |
| osGNO Liquidity pools | 0 SWISE |
| Total | 7,620,000 SWISE |
osGNO liquidity pools
The SLC has 400k SWISE on hand from last month’s budget request to utilize when the 100% LTV update on Gnosis Chain goes live.
SWISE liquidity pool
The aim is to maintain current liquidity, requiring 860k SWISE per month at current market prices.
osETH liquidity pools Mainnet
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 6.16M SWISE per month for mainnet.
osETH liquidity pools Arbitrum
The current liquidity depth for osETH pools on Arbitrum is below optimal levels and requires improvement. Allocating 600,000 SWISE per month is expected to significantly enhance liquidity depth. This allocation corresponds to 150,000 SWISE incentives per week, which, given the resulting high APYs, is projected to attract additional liquidity to these pools and support sustainable growth within the Arbitrum ecosystem.
SLC compensation
The team holds 249,690 SWISE from last month’s budget allocation, earmarked for the final payment to the outgoing SLC members. With this payment, no further budget requests for SLC compensation will be necessary. Following the community’s approval on November 6, 2024, the SLC will be disbanded (link) in favor of a team-led liquidity incentives allocation process.