Stakewise Vault Incentives

hello frens,

wanted to put my thoughts on Stakewise in the world, looking forward to your feedback.

In my view Lido has clearly won the liquid staking derivate game when it comes to DeFi integrations.
stETH is basically like USDC in the mind of the people, where Lido, similar to Circle, does not need to incentivize their asset anymore as its the default for most people anyway.

So how can Stakewise grow significant marketshare?

The USP of Stakewise is V3 … your vaults… (obviously lol)

And this where we should put in the incentives in my opinion. Ok having deep liquidity is important but that doesnt fuel the growth of the protocol effectively in its current form.

This is what im thinking:

1. Incentivize Vault Operators

So instead of incentivizing user deposits we should give incentivizes for vault operators, where they receive SWISE rewards for increasing their TVL in their individuals Vaults.

You want to make them ambassadors of your protocols and have them try the hardest to increase their own vaults TVL.

Any other incentives will likely just get farmed and dumped. (Vault operators are alinged and might not dump as much as mercenary yield farmers)

This incentivization does not need be build in a complex smart contract way, a simple frontend in a leaderboard style design which tracks the $$$ increase for each vault, and show that lets stay 10k$ USD of rewards per Week up for grabs and to be distributed to the top 10 vault operators. (Top 10 highest $$$ value increase)

(Reward size needs to be high, so there is a real incentive for current operators but also for new operator to enter !)

I truely think this could fuel a lot of growth!

Excited for your feedback ! :slight_smile:

1 Like

Hello @DeFiPowerUser,

I fully agree that, in addition to liquidity providers, vault operators should be prioritised in the stakewise ecosystem.

Vaults, as you point out, is what makes stakewise v3 unique.

You use competitive elements and gamification, which I find to be an intriguing direction of thought. In essence, I am enthusiastic. As you describe it, in its current form, i think its easy to manipulate. – a whale could farm with a new vault weekly. -

Rewarding or scoring vaults based on attributes such as TVL, client diversity, DVT, doxed or not doxed has been discussed as an idea before. It was not further developed, I don’t recall the reason behind that. Absolute or relative growth could be part of that. If i recall right the notion was to establish a commission to propose vault attributes to the DAO.

In addition to your call to ‘Incentivize Vault Operators,’
Providing extra tools and options for vault operators, besides protocol emissions, adds value. Vaults are service providers and seek to distinguish themselves.

I believe there’s a lot of potential in allowing communication between vault operator and users (with opt-in/opt-out). With a communication module, vault operators could offer additional services. Services tanging from system status updates to advice on utilizing oseth in defi. From professional entities to anon influencers (a ‘Friend.tech’-like social layer).

Offering more choices for end-users and additional service and value on top of staking.

An other community member has mentioned NFTs could play various roles. An NFT serving as a whitelist for deposits or as proof of deposit could be of interest to DAOs.

A additional option that i can think of is a ‘subscription vault’ with special features. For instance, with a yearly subscription cost of $250 for a product or service (e.g. Tradingview plus or Bankless premium.). A 3 ETH deposit (@3.8%) in a vault could grant ‘free’ membership -and the ability to mint oseth (?)-

Vaults are indeed theUSP, and further product developments in this area seem like a logical path. In my view, DAO funds could be utilized for research and development in the realm of additional vault types, options and incentives.

I think there’s a lot that can be done! I’m not sure about the current priorities or routemap. Something like this seems exciting to me!