[DCP-9 v2] Sushi Liquidity Program 3 Months Extension (Updated)

Summary

With a liquidity of $1.43M on Ethereum, primarily concentrated on Sushi, this proposal aims to extend the LP rewards to preserve robust liquidity on decentralized exchanges within the Ethereum network.

Acknowledging the importance of Sushi liquidity and taking community feedback into account, we are proposing to extend the Sushi LP rewards with a 25% decrease in RADAR rewards.

The terms of the extension are 90-day (3-month) period, but with an allocation of 213,333 RADAR per day and a total of ~19,200,000 RADAR (~6.4M less than the initial proposal).

Motivation

Sushi remains the primary platform for trading RADAR in a decentralized manner on Ethereum, ensuring reduced slippage and substantial liquidity depth. Although RADAR is available on centralized exchanges, Sushi plays a crucial role in allowing anyone to easily participate in the DappRadar ecosystem, bypassing centralized players. To maintain and potentially increase the current liquidity on Sushi, the rewards offered to Liquidity Providers (LPs) who stake their LP tokens must be sustained. Therefore, we propose continuing to reward LPs and preserving a healthy ecosystem.

Abstract

Since the last proposal focused on extending the Sushi LP rewards (DCP-7 6), numerous positive developments have emerged within the ecosystem. The product has evolved, the 2023 roadmap was published, valuable partnerships were formed, and RADAR was listed on significant centralized exchanges. However, the importance of liquidity on decentralized exchanges remains high.

Presently, the RADAR-ETH pool TVL on Sushi is $1.43M, which facilitates efficient trades given the average trade size in the pool. This was demonstrated in February when over $4.20M in trade volume was achieved in a single day on Sushi alone. This indicates that the current liquidity maintains a stable position and readies us for future growth.

As mentioned in previous proposals, we will continue exploring various alternatives to attract and maintain liquidity in RADAR pools across all chains. There has been some progress in researching potential solutions to decrease liquidity costs and transition from Rented Liquidity (e.g. Sushi - Ethereum) to Protocol Owned Liquidity (e.g. ApeSwap - BNB Chain).

Proposal

For this 90-day (3-month) LP rewards extension, we propose allocating ~19,200,000 RADAR tokens at a daily rate of ~213,333 RADAR, sourced from the unused Airdrop pool (a 25% reduction from the existing terms).

Benefits

• Extending rewards for committed RADAR holders and LPs on the Ethereum network
• Upholding our cross-chain narrative by ensuring Ethereum users have access to provide liquidity to DappRadar
• Preserving and potentially increasing liquidity in the RADAR-ETH pool, enabling low slippage for DEX trades

Drawbacks

• Distributing a substantial portion of RADAR tokens that could be allocated to other initiatives

Vote

- FOR - Reduce rewards by 25% and extend Sushi liquidity program for 3 months

- AGAINST - Do not extend Sushi liquidity program for 3 months