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:
Also note that reports will move to a week-based request schedule and accounting to better align with the practical side of distributing incentives and making budget requests. Here’s how to read it:
- We are currently in week 17 of the year
- The requested budget will start being used from next week, ie week 18
- The budget is enough to last 4 weeks, week 18 through to 21
- The next budget request will arrive in week 20.
As always, if you have any questions, do not hesitate to leave them under this post!
Report on the incentive allocation in March 2025
| Inflows (Budget) | Outflows | |
|---|---|---|
| SWISE liquidity pool | 860,000 SWISE | 860,000 SWISE |
| osETH liquidity pools (Mainnet) | 5,720,000 SWISE | 5,720,000 SWISE |
| osETH liquidity pools (Arbitrum) | 600,000 SWISE | 600,000 SWISE |
| osGNO Liquidity pools | 0 SWISE | 0 SWISE |
| Total | 7,180,000 SWISE | 7,180,000 SWISE |
Starting SLC Safe Balance: 1,519,690 SWISE (1-March-2025)
Ending SLC Safe Balance: 1,519,690 SWISE (1-April-2025)
osETH liquidity pools (Mainnet)
Liquidity in the osETH-ETH pool on Balancer remains solid, with a current total value locked (TVL) of $30.5 million based on ca 19.3K ETH worth of tokens. The osETH-rETH pool on Curve remained stable month to date, with liquidity of around $9 million based on ca 5.5K ETH worth of tokens.
We highlight the upcoming call to migrate liquidity from the osETH-ETH pool to a osETH-aaveETH Boosted Balancer Pool, consistent with the goal of reducing the amount of incentives spent on liquidity while keeping its levels flat. A separate call will be issued to LPs to prescribe the recommended actions ahead of the incentives migration. The team is also considering switching away from rETH liquidity in favour of another LST due to the lack of support for withdrawals within Rocket Pool and a growing share of rETH in the osETH-rETH pool (now 30/70 in favour of rETH).
osETH liquidity pools (Arbitrum)
The combined liquidity levels for osETH pools on Arbitrum sits at around $0.45 million vs ~$0.6M a month ago, consistent with the decline in ETH prices.
At current TVL levels, allocated SWISE incentives provide an APY exceeding 15% for LPs. The team will continue to monitor the impact of incentives on liquidity, and will reduce the expenditure if liquidity doesn’t pick up.
We highlight the upcoming call to migrate liquidity from the osETH-ETH pool to a osETH-aaveETH Boosted Balancer Pool on Arbitruml, consistent with the goal of reducing the amount of incentives spent on liquidity while keeping its levels flat. A separate call will be issued to LPs to prescribe the recommended actions ahead of the incentives migration.
osGNO liquidity pools
The osGNO-GNO liquidity pool on Balancer sits at around $1M in TVL, flat vs a month ago, having grown in terms of GNO token balance, but declined in value in line with the GNO price. This pool is not currently receiving SWISE incentives, being incentivized instead by the Gnosis ecosystem participants. The APY for LPs has declined from ~14% to ca 5%, which for now seems to not have impacted the liquidity levels in the pool. As a reminder, these incentives are not seeded by the StakeWise DAO. The team will continue monitoring the situation and will commence liquidity incentivization if liquidity starts leaving the pool.
SWISE liquidity pool
There are no major inflows or outflows to report.
Proposed budget for the next 4 weeks
| Inflows (Budget) | |
|---|---|
| SWISE liquidity pool | 215,000 SWISE & 3.56 osETH |
| osETH liquidity pools (Mainnet) | 780,000 SWISE & 14.76 osETH |
| osETH liquidity pools (Arbitrum) | 30,000 SWISE & 1.67 osETH |
| osGNO Liquidity pools | 0 SWISE |
| SLC refund for spent SWISE | 3,630,000 SWISE |
| Total | 4,655,000 SWISE & 20 osETH |
osGNO liquidity pools
With a substantial reserve built up from the previous months, and the high level of incentives in the pool as of today, we are not requesting any tokens for the osGNO-GNO pool for the next 4 weeks.
SWISE liquidity pool
The aim is to maintain current liquidity, requiring 215K SWISE & 3.56 osETH per month at current market prices. This represents a 25/75 mix of SWISE/osETH incentives, consistent with the DAO-approved initiative to start using osETH for liquidity incentivization, targeting ca 10% APY.
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 780,000 SWISE & 14.76 osETH per month, consistent with the ability to reduce expenditure thanks to moving to a Boosted pool, and replacing 75% of the incentives with osETH.
osETH liquidity pools Arbitrum
After further analysis vs last month, the SLC believes that the liquidity depth of osETH pools on Arbitrum is optimal given its utilization in the ecosystem, and therefore does not require improvement. An allocation of 30,000 SWISE & 1.67 osETH per month is being requested, consistent with the ability to reduce spend thanks to moving to a Boosted Balancer pool, and replacing 75% of SWISE incentives with osETH.
SLC refund for spent SWISE
Due to the delay in the publishing of this budget request, a significant portion of the incentives for April has been funded from the team’s wallets. Hence, we request a refund of 3,630,000 SWISE.