Thanks again for your input here @ottodv! Your concern regarding the potential for bribing to increase SWISE sell pressure is completely valid. Currently, StakeWise rewards LPs who directly use the protocol and who are for the most part not dumping (at least for the large token holders), whereas when bribing the protocol would be sending SWISE to entities who might not be well-aligned and could dump. In light of this, I propose the following updates to the osETH liquidity strategy:
» Monitoring must be in place to evaluate what happens to SWISE used as bribes to determine whether or not bribing does indeed increase the sell pressure compared to direct SWISE incentives. Analysis to also be done on the type of LPs in the new pool.
» Should sell pressure increase due to bribing, a fallback plan should be in place to reduce the amount of bribes and increase direct SWISE incentives. Direct SWISE incentives can be achieved by deploying SWISE emissions directly to users of Balancer and/or Aura. Quest, for example, would allow the SLC a high degree of flexibility for how capital is deployed as bribes vs direct incentives and provides a path towards a hybrid of bribing and direct incentives.
It is also worth mentioning that, as stated in the original osETH proposal, the goal is to minimize the $ cost of liquidity TVL. Ultimately, StakeWise should look to bring the amount of SWISE emissions required for liquidity down to 0 and avenues should be actively explored to achieve this. I propose the following updates to the osETH strategy based on this:
» Make it clear that the goal here is not just to minimise the need for liquidity incentives via SWISE emissions, but to reduce those emissions to 0 in time.
» Actively explore the addition of solutions/liquidity pools that can help StakeWise obtain this liquidity goal, such as deploying a Boosted Balancer pool between osETH-ETH to test the appetite of such pools with LPs.
Please let us know if there are any concerns still outstanding!