Uni-v2 ETH-$DG LP Rewards

Background

Per Proposal #QmPXRmY, Uni-V2 ETH-$DG LP rewards are 350 $DG/week 4/20 - 5/24. The current APY is ~55%. We have ~$6.7M in liquidity for this pair on Uni-v2 and the DAO provides ~$1.7M in liquidity for the same pair on Uni-v3 (app.uniswap.org/#/pool/16252).

We also have 2 pools of L2 $DG liquidity on QuickSwap (w/ ~100% APY in QUICK) and an ETH-$DG pool on SushiSwap (w/ ~100% APY in SUSHI).

Proposal

5/25 - 6/29, decrease Uni-V2 ETH-$DG LP rewards to 225 $DG/week. Unless the DAO votes otherwise, ETH-$DG Uni-v2 LP rewards will end after 6/29.

Rationale

At 225 $DG/week, the expected APY is ~37%. Near the end of June, the DAO can reevaluate and elect to extend rewards past 6/29. Either way, over the medium-term, we hope to convert current Uni-v2 ETH-$DG LP stakers into $DG governance stakers which continues to offer ~35% APY. We also expect to offer continue to offer additional yield farming opportunities, like SushiSwap and QuickSwap, with more potentially coming soon.

As a side note: The DG whitepaper did not explicitly say how long LP rewards would be funded, but 6/29 will mark 30 weeks since the launch of the rewards. With the Uni-v3 liquidity the DAO provides itself and other avenues for community members to yield farm using $DG (e.g. QuickSwap, SushiSwap), we should decrease this source of inflation for $DG holders if possible.