LIP-001: Protocol veLIT for liqLIT, LIQ

Author: Liquis Contributors

Summary Set aside 10% of Liquis-owned veLIT to vote on liqLIT and LIQ gauges every Bunni cycle, with 5% going to liqLIT-veLIT BPT pool and 5% going to the LIQ-ETH pool.

Proposal Reserve 10% of Liquis veLIT for the following Bunni gauges every voting cycle: 5% of veLIT for LIQ/ETH Full-Range 3% of veLIT for liqLIT / veLIT BPT 0.9 - 1.1 2% of veLIT for liqLIT / veLIT BPT Full-Range

The amount of Liquis veLIT set aside for this effort, and its calibration across ranges, can be adjusted by future votes.

Motivation There are multiple pathways for incentivizing liquidity provider participation in these ranges, but the lowest hanging option at the moment is to reserve some of our veLIT holdings for this purpose. For example, if Liquis holds 2,500,000 veLIT, this strategy would set aside x% of it to automatically go to the above gauges, with vlLIQ votes determining the allocation of the other 2,500,000 - x% veLIT.

While this does reduce the veLIT available for vlLIQ holders to allocate, it ensures that a) would-be minters of liqLIT retain peace of mind around its secondary liquidity, and b) that LPs who stake with Liquis can receive accurate estimates of the value of their LIQ emissions. Weakening either value proposition would hamstring further growth of Liquis.

References liqLIT Bunni Pool: https://bunni.pro/pools/ethereum/0x276be30882ea365a5854739f93d10c916175e81c LIQ Bunni Pool: https://bunni.pro/pools/ethereum/0x5958390c53b07af60aae34eb11d453388ee849ec Current Liquis veLIT Holdings: https://etherscan.io/token/0x03C6F0Ca0363652398abfb08d154F114e61c4Ad8