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 incentive allocation
| Inflows (Budget) | Outflows | |
|---|---|---|
| SWISE liquidity pool | 860,000 SWISE | 860,000 SWISE |
| osETH liquidity pools | 6,160,000 SWISE | 6,161,000 SWISE |
| osGNO Liquidity pools | 0 SWISE | 0 SWISE |
| SLC compensation | 196,260 SWISE | 196,260 SWISE |
| Total | 7,216,260 SWISE | 7,217,260 SWISE |
Starting SLC Safe Balance: 12,980,560 SWISE (08-Aug-2024)
Ending SLC Safe Balance: 5,763,300 SWISE (04-Sept-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)
Liquidity levels dropped from ~$5M to ~$2M following the expiry of the Arbitrum grant and consequent removal of ARB emissions that were used to incentivise liquidity over the past 12 weeks. Moving forward, SWISE will be used at the prevailing market rate in order to maintain current liquidity levels.
osGNO liquidity pools
Incentives are yet to go live. 500k SWISE is still held in reserve from a previous budget request.
SWISE liquidity pool
There are no major inflows or outflows to report.
Proposed budget for Month 12
| Inflows (Budget) | |
|---|---|
| SWISE liquidity pool | 860,000 SWISE |
| osETH liquidity pools (Mainnet) | 6,160,000 SWISE |
| osETH liquidity pools (Arbitrum) | 800,000 SWISE |
| osGNO Liquidity pools | 0 SWISE |
| SLC compensation | 254,065 SWISE |
| Total | 8,074,065 SWISE |
osGNO liquidity pools
The SLC has 500k SWISE on hand from a previous month’s budget request to utilise when incentives go live on osGNO.
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 6.1M SWISE per month for mainnet and 800k SWISE per month for Arbitrum at current market prices.
SLC compensation
$5k in SWISE @ 0.01968 USD per SWISE (30d avg) => SWISE 254,066 (as approved by the DAO during the implementation of the SLC).