Vote 013: Allocate up to $600k to incentivize PWRD3CRV Curve pool

TLDR: This proposal asks for up to $600k in dedicated funds to continue incentivizing PWRD3CRV Curve liquidity. It also explicitly permits GRO buyback from the open market and experimentation with incentives to achieve the highest spend efficiency on liquidity incentives.

Original community forum post here: https://community.gro.xyz/t/vote-013-allocate-up-to-600k-to-incentivize-pwrd3crv-curve-pool/284.

Summary

Gro ran 2 rounds of Votium incentives in April for the PWRD3CRV meta pool on Curve with 69,000 GRO and 35,000 GRO tokens respectively.

Outcome of the incentive system was encouraging. PWRD3CRV liquidity grew $15mn to reach $28mn, with PWRD TVL in the pool increasing from $9mn to $13mn. This increased utilisation ratio and Vault yield, and helped drive total protocol TVL up from approximately $40mn to $54mn.

To continue growing the pool depth and TVL, further incentivization for the PWRD3CRV Curve gauge through Votium or other may be required. This proposal asks the Gro DAO to allocate up to $600k for this purpose.

So far mostly liquid GRO tokens were used for Votium incentives, this proposal explicitly permits also the usage of Gro Treasury’s stablecoin assets to buy back GRO tokens from the open market (up to the allocated $600k) to use for incentives.

Implementation can take various forms using a mix of GRO, Gro Vault Tokens, PWRD (acquired with USDC) as liquidity incentives. This vote gives core contributors Grwth Lbs and Wojak the mandate to devise implementation plans so that Gro incentives are utilised to the highest efficiency possible.

Vote 013: Allocate up to $600k to incentivize PWRD3CRV Curve pool

Proposal that Gro DAO allocates up to $600k to incentivize CRV allocation to the PWRD3CRV meta pool through Curve gauge. The sum could be funded by either GRO, USDC, PWRD, or Vault tokens in Gro Treasury; DAO contributors, Growth Lbs and Wojak, will experiment to best deepen liquidity and increase TVL of Gro protocol.

A suggested implementation is using the stablecoin assets in Gro Treasury to buy back GRO tokens; it is possible to use USDC directly or through first depositing USDC for Gro Vault tokens (GVT) and using them to buy GRO tokens for incentives. This increases Gro TVL and Vault supply at the same time, which increases the capacity to mint more PWRD. Alternative implementation could be providing LP tokens such as PWRD/GRO on Uniswap v2 to incentivize allocation of CRV rewards to the PWRD3CRV pool if Votium or similar platforms allow. It would require experimentation to understand what combination would provide the highest capital and operational efficiency.

The allocation would remain in Gro Treasury until deployed via the multi-sig for PWRD3CRV incentivization. There is no fixed timeline or min/max amount for each round of incentivization.

When the funds run out, the multi-sig would transfer no more funds (in excess of the amount “borrowed” from marketing spend - see details in second part of the risk section) to Votium or similar platforms without another DAO governance approval. DAO contributors will need to return to DAO governance for further allocation. If such incentivization is discontinued as they are no longer deemed productive for PWRD liquidity and/or Gro protocol TVL, the remaining sum in Gro Treasury will be free to be used for other purposes. If the funds are not being deployed for 6 months, they will also no longer be earmarked for PWRD3CRV incentives.

Voting process

This vote was discussed in the Gro community forum and Discord for 7 days. The vote will run live for a further 7 days.

Yes: Allocate up to $600k to incentivize PWRD3CRV Curve pool

No: Do not allocate up to $600k to incentivize PWRD3CRV Curve pool