Introduction

The KILT Foundation is developing a program of incentives to bootstrap liquidity in the new Uniswap pool. We would like to offer KILT rewards to liquidity providers (LPs) in the pool, via a structured system that takes into account their contribution, duration, loyalty, and other factors. To this end, we request 1% of the supply (2,956,000 $KILT) which we calculate will give us the flexibility to offer attractive APYs and bring liquidity to the pool.

Rationale & Motivation

The community recently arranged CEX liquidity and $KILT has since successfully begun trading. A Uniswap pair has been launched with moderate liquidity of 2% market cap. To support ecosystem growth and a healthy future for KILT we are developing a rewards program through a DeFi-style staking platform, which will allow LPs to earn rewards according to the extent and quality of their participation in the pool.

We have analysed how this can be made attractive to potential LPs whilst minimising overall $KILT emissions. Following the migration, inflation is otherwise at 0%, permanently, and this affords room to manoeuvre when genuine benefits are available. We would like to emphasise the important difference between this scheme and the old Stakeboard arrangement on Polkadot; here we aim to accrue genuine benefits in the form of a deeper liquidity pool, and rewards will be granted only to those who do make that contribution.

For the avoidance of doubt - the requested tokens would be used strictly for incentives/rewards; development of the program itself is being funded by the KILT Foundation.

Proposal Details

• Amount Requested: 2,905,600 $KILT • Format: Grant • Use: Rewards for Uniswap LP incentive program • Duration: open-ended

Benefits

• Rewards community members who wish to become LPs on Uniswap • Offers attractive APYs to outside entities who would contribute further LP • Deepens liquidity in the KILT/ETH pool • Raises KILT’s profile in general

Next Steps

If the proposal is approved:

• 2,905,600 KILT to be allocated from the Treasury, to be drawn upon by the KILT Foundation as required for the above-described purpose.