KIP-49: One month extension of incentivized Arrakis (UNI-V3) LP pool

Summary

This KIP proposes a one-month continuation of liquidity mining on Arrakis (UNI-V3) throughout the planned velodrome liquidity trial so that a more accurate comparison can be made between the two platforms.

Abstract

Initial liquidity for KWENTA was established on Uniswap V3 (Optimism) through a one-month incentivized KWENTA/ETH Arrakis Finance liquidity pool. The pool was set to run between November 19 and December 18, 2022. A total of 783.43 KWENTA (0.25% of the initial supply) was allocated to incentivize the pool, being made available as liquid KWENTA.

Following approval of KIP-46, liquidity mining for KWENTA is due to be trialled on Velodrome Finance. This proposal would allow for liquidity mining to continue on Arrakis throughout the Velodrome trial, incentivized with a total of 195.8575 liquid KWENTA.

Motivation

Dividing KWENTA incentives across Arrakis and Velodrome for a one month trial will:

Allow for a comparison between the two platforms to be made Ensure that comparisons are like-for-like (i.e. that both trials occur in the same market conditions and at the same point in the KWENTA token's lifecycle post-launch) Help to establish continuity of liquidity on Uniswap V3 (Optimism), which is important in the early stages of a new token Provide two marketplaces for KWENTA to be traded, potentially supporting visibility of the platform and increasing market efficiency

Specification

For more information visit: https://kips.kwenta.io/kips/kip-49/