This is a proposal to allocate SWISE from the StakeWise DAO Community Treasury to the StakeWise Liquidity Committee (SLC) 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 January
| Inflows (Budget) | Outflows | |
|---|---|---|
| SWISE liquidity pool | 860,000 SWISE | 860,000 SWISE |
| osETH liquidity pools (Mainnet) | 5,940,000 SWISE | 5,940,000 SWISE |
| osETH liquidity pools (Arbitrum) | 600,000 SWISE | 600,000 SWISE |
| osGNO Liquidity pools | 0 SWISE | 0 SWISE |
| Total | 7,400,000 SWISE | 7,400,000 SWISE |
Starting SLC Safe Balance: 899,690 SWISE (31-December-2024)
Ending SLC Safe Balance: 899,690 SWISE (expected 31-January-2024)
osETH liquidity pools (Mainnet)
Liquidity in the osETH-ETH pool on Balancer remains solid, with a current total value locked (TVL) of $61 million. The osETH-rETH pool on Curve remained stable month to date, with liquidity consistently around $18 million.
The osETH-USDC pool on Uniswap saw a modest increase in TVL, rising from $52,000 at the end of December to $57,000 by the third week of January. Despite this growth, the pool’s TVL remains near its lowest levels since May 2024, with a composition heavily weighted towards osETH - constituting 76% of the total assets.
As communicated in the January report, the team reduced monthly incentives for the osETH-USDC pool from 440,000 SWISE to 220,000 SWISE at the beginning of January. This decision was driven by the pool’s limited overall liquidity and user engagement, as the previous incentive level demonstrated minimal impact. By reallocating resources more efficiently, the team aims to optimize the use of SWISE incentives.
osETH liquidity pools (Arbitrum)
The combined liquidity levels for osETH pools on Arbitrum have stabilized at approximately $1 million. To incentivize greater engagement, the osETH-ETH pool on Balancer is allocated 100,000 SWISE per week, while the osETH-wstETH pool on Ramses receives 50,000 SWISE per week.
At current TVL levels, allocated SWISE incentives provide an APY exceeding 15% for LPs. The team is confident that this attractive APY will encourage additional liquidity provision in both pools, driving growth in TVL and further strengthening liquidity depth for osETH on Arbitrum.
osGNO liquidity pools
The osGNO-GNO liquidity pool on Balancer has stabilized around $1.5M in TVL. This pool is not currently receiving SWISE incentives, as for the good portion of November and December osGNO was trading at a premium relative to GNO. With the introduction of 100% osETH minting in the Genesis Vault, the premium has mostly disappeared. Moreover, the Aave DAO is discussing the addition of osGNO to the Gnosis market on Aave, potentially requiring a larger amount of liquidity on the network. The team is actively monitoring the situation and will commence liquidity incentivization if needed.
SWISE liquidity pool
There are no major inflows or outflows to report.
Proposed budget for February
| Inflows (Budget) | |
|---|---|
| SWISE liquidity pool | 860,000 SWISE |
| osETH liquidity pools (Mainnet) | 5,940,000 SWISE |
| osETH liquidity pools (Arbitrum) | 600,000 SWISE |
| osGNO Liquidity pools | 400,000 SWISE |
| Total | 7,800,000 SWISE |
osGNO liquidity pools
With the 100% LTV now live on the Gnosis Chain, we request 400k SWISE (allocated 100k SWISE per week) to incentivize liquidity in the osGNO-GNO pool. Funds will be deployed only if deemed necessary.
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 5.94M SWISE per month for mainnet.
osETH liquidity pools Arbitrum
The liquidity depth of osETH pools on Arbitrum is currently below optimal levels and requires improvement. To address this, an allocation of 600,000 SWISE per month has been designated. This allocation is anticipated to improve liquidity depth by offering competitive APYs, which are expected to attract additional liquidity provision and foster sustainable growth of osETH within the Arbitrum ecosystem.