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 here.
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 September (04-30/09/2024)
| Inflows (Budget) | Outflows | |
|---|---|---|
| SWISE liquidity pool | 860,000 SWISE | 860,000 SWISE |
| osETH liquidity pools (Mainnet) | 6,160,000 SWISE | 6,160,000 SWISE |
| osETH liquidity pools (Arbitrum) | 800,000 SWISE | 600,000 SWISE |
| osGNO Liquidity pools | 0 SWISE | 112,500 SWISE |
| Total | 7,820,000 SWISE | 7,732,500 SWISE |
Starting SLC Safe Balance: 5,763,300 SWISE (04-Sept-2024)
Ending SLC Safe Balance: 5,850,800 SWISE (30-Sept-2024)
Notes:
- 254,065 SWISE were spent on the SLC compensation for August, vs 196,260 SWISE budgeted, and were paid in September. The value is now reported separately to allow the table above to show the actual outflows.
- 284,220 SWISE were spent on the SLC compensation for September, vs 254,065 SWISE budgeted, and were paid in October. The value is now reported separately to allow the table above to show the actual outflows.
- 112,500 SWISE were sent to the Team safe on Gnosis Chain but not spent during the month of September.
- 8,074,065 SWISE were received from the StakeWise DAO in the month of September, to be spent over the following ~4 weeks.
Report on the incentive allocation in October (01-31/10/2024)
| Budget | Outflows | |
|---|---|---|
| SWISE liquidity pool | 860,000 SWISE | 1,290,000 SWISE |
| osETH liquidity pools (Mainnet) | 6,060,000 SWISE | 6,050,000 SWISE |
| osETH liquidity pools (Arbitrum) | 800,000 SWISE | 750,000 SWISE |
| osGNO Liquidity pools | 500,000 SWISE | 200,000 SWISE |
| SLC compensation | 254,065 SWISE | 284,220 SWISE |
| Total | 8,474,065 SWISE | 8,574,220 SWISE |
2,823,420 SWISE were obtained from the team in the interim to maintain an uninterrupted flow of incentives.
Notes:
- SWISE outflows for Gnosis in October totaled 200,000 SWISE; only 100,000 SWISE were allocated. The remaining SWISE sits in the team multisig.
- SWISE outflows for Arbitrum in October totaled 750,000 SWISE: only 700,000 SWISE were allocated. The remaining SWISE sits in the team multisig.
Starting SLC Safe Balance: 5,850,800 SWISE (01-Oct-2024)
Ending SLC Safe Balance: 100,000 SWISE (expected 30-Oct-2024)
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)
Following the expiration of the Arbitrum grant in August and the removal of ARB emissions that were used to incentivize liquidity, liquidity levels dropped from ~$2M in mid-September to ~ $1M. Since the beginning of October, liquidity has stabilized at around $1M.
Going forward, SWISE tokens will continue to be used at the prevailing market rate to improve liquidity.
For the first few weeks of SWISE incentives, the osETH-ETH pool on Balancer received 150k SWISE per week in incentives, and the osETH-wstETH pool received 50k SWISE per week. In the past 2 weeks, incentives for the osETH-ETH pool have been reduced to 100,000 SWISE per week to match the market reward rate.
osGNO liquidity pools
The osGNO-GNO liquidity pool SWISE incentives went live in the first half of October, with the pool receiving 100k SWISE incentives between Oct 11-18. Since the launch of these incentives, liquidity in the osGNO-GNO pool has grown from around ~$2.5M to ~$5M. The recently launched osGNO/SWISE pool on Balancer currently does not receive any incentives.
SWISE liquidity pool
There are no major inflows or outflows to report.
Proposed budget for November 2024 *important
This month we are departing from the mid-month reporting and request time, focusing instead on the more transparent end-of-month requests and calculations that are aligned with the actual spending periods.
Our current funding request to the DAO is to cover the period from November 4th to November 30th, 2024, and to refund the SWISE spent by the team in October and the 1st week of November. The total requested amount is 12,883,110 SWISE tokens.
| Request | |
|---|---|
| SWISE liquidity pool | 860,000 SWISE |
| osETH liquidity pools (Mainnet) | 6,160,000 SWISE |
| osETH liquidity pools (Arbitrum) | 600,000 SWISE |
| osGNO Liquidity pools | 400,000 SWISE |
| SLC compensation | 249,690 SWISE |
| Team Reimbursement | 4,613,420 SWISE |
| Total | 12,883,110 SWISE |
Team reimbursement includes SWISE provided by the team between October 19th and November 3rd.
osGNO liquidity pools
At this point, we do not require additional funding for the osGNO pools, as the Safe on Gnosis holds sufficient SWISE to cover incentives for the upcoming periods.
SWISE liquidity pool
The aim is to maintain current liquidity, requiring 860k SWISE per month at current market prices.
osETH liquidity pools (Mainnet and Arbitrum)
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 and 600-800k SWISE per month for Arbitrum at current market prices.
SLC compensation
Following the departure of some SLC members and the reduction in SLC activity amid lack of bribing usage on the Balancer and Curve markets, we are proposing (link) to disband the expert side of the Liquidity Committee in favour of a more straightforward team-driven approach. Hence, we request 249,690 in SWISE, worth ~$4K total, as the final payment to the outgoing SLC members.
Team refund
The move to a more outflows-aligned reporting & request schedule has resulted in a 2-week shift in the SWISE funding request, creating the need for external SWISE funding worth 3 weeks of incentives. This external funding was duly provided by the team to cover the incentives payments in the 2nd half of October and through the 1st week of November. The reimbursement figure requested by the team is exactly equal to the amount provided to the SLC in the interim.
Vote
Vote Yes or No in this proposal - the link to Snapshot is live!