[GIP 59] Allocate GEAR to EXMO Earn program

Summary

Allocate $10k in GEAR tokens for August 2023 to incentivize users of EXMO to supply assets to Gearbox passive pools. The amount of GEAR rewards is fixed in USDT terms (10,000 USDT) and distributed at the end of the 30-day supply period.

Motivation

EXMO is a regulated crypto exchange founded in 2014. The company is based in the UK, Ukraine, Poland, and Lithuania. The exmo.com cryptocurrency platform has more than 6,000 active monthly traders, 166 trading pairs, an exchange token EXMO Coin (EXM) and operates with 4 fiat currencies. Currently, the average daily trading volume is ≈$80 million.

• In July 2023 EXMO launches an Earn program which at its fist stage will enable users to supply assets to Gearbox’s passive pools
• EXMO commits to supply $200k to Gearbox passive pools for 2 months
• EXMO will host an AMA with a member of Gearbox DAO & prepare infographics re the risks & benefits of aping into Gearbox passive pools
• EXMO will send emails & push notifications to its 1mln+ users re this opportunity
• EXMO will issue NFTs (as a member badge via POAP) and raffle off $1000 in EXM among those who have kept a deposit for more than 60 days.

These activities should increase the TVL of the protocol and awareness about Gearbox among normies that trade on EXMO. If the results of the Earn program satisfy both parties, we’ll discuss the next steps to strengthen the partnership e.g. via adding GEAR/USDT pair on the spot exchange & introducing GEAR-ETH liquidity provision to users of EXMO.

More details

Accumulating and supplying assets

As the first “yield farming” phase of the Earn program EXMO enables users to supply USDC, DAI and USDT. The supply limit per user is from $200 to $1000. To entice new users EXMO promises 65% APR for the first 30 days which will be effectively subsidized by GEAR tokens. Also, the UI will enable users to automatically re-supply assets at a current passive pool rate after the yield farming period is over. EXMO will clearly state the risks associated with a such investment (smart contract risk, oracle risk, governance risk, etc).

Withdrawing assets & distributing rewards

After the 30-day yield farming period is over the users are eligible to withdraw. If a user doesn’t withdraw, the assets remain in the passive pool, earning a market yield and are available for withdrawal after a short “cooldown” period.