KIP-64: Liquidity Mining Incentives

Simple Summary

This KIP proposes to incentivize liquidity mining on Velodrome based on the findings from the second trial phase.

Abstract

KIP-46, KIP-49, and KIP-50 (Section 5.6 of the KSL) introduced a trial of liquidity mining between Uniswap and Velodrome. The results of the second trial have been analyzed and, as a result, this KIP proposes to incentivize liquidity mining on Velodrome.

Motivation

The second trial revealed that the Velodrome WETH/KWENTA pool attracted more TVL per 1 KWENTA of incentives compared to the Arrakis WETH/KWENTA pool. Additionally, the KWENTA trading volume during this period was 87% higher on Velodrome than on Uniswap. These findings have led to the conclusion that Velodrome is the more efficient platform for liquidity mining incentives.

Specification

For more information visit: https://app.radicle.xyz/seeds/maple.radicle.garden/rad:git:hnrkq1oex148yz4zi9tm7spfnjaryyuc93yay/tree/master/kips/drafts/kip-64.md