LODE liquidity and POL migration to Camelot V3

Following the release of Camelot V3 using the concentrated liquidity range model, the Lodestar and Camelot team have been in discussion to migrate our POL from Camelot V2 to Camelot V3.

This migration is primed to enhance liquidity efficiency, thereby smoothing out the trading experience by minimising slippage.

Unlike the full range liquidity pools seen in Camelot V2, where assets are spread across the entire price spectrum, the concentrated liquidity model in Camelot V3 allows liquidity providers to allocate their assets within specified price ranges. This innovative approach aims to optimize capital efficiency by concentrating liquidity at the most traded price ranges, which in turn can lead to reduced slippage and potentially better yields for liquidity providers.

The Lodestar team has collaborated with Myrddin from Camelot to build liquidity ranges for our POL following the below Table. The Lodestar team will take inspiration from these recommendations to setup the liquidity on the V3.

The Camelot team will migrate the GRAIL/xGRAIL rewards to the V3, while we could expect ARB incentives distributed to our pool following the Camelot STIP grant proposal dedicating a share of their ARB allocation to the ETH-LODE V3 pair.

This migration to Camelot V3 necessitates the selection of a robust liquidity management partner capable of deploying the Community’s liquidity within the specified ranges while actively managing user positions to adapt to market dynamics.

Having witnessed successful liquidity management on Uniswap V3 with the ETH-LODE pair, the proposal to partner with Gamma for this migration seems to be a logical progression. This partnership will facilitate the establishment of a managed Camelot V3 ETH-LODE pair. With Gamma at the helm, users can provide ETH and LODE on Camelot, and Gamma will actively manage the positions within the calculated ranges to ensure optimal capital efficiency.

It's important to note that only Liquidity Providers on Gamma will be eligible to earn Grail, xGRAIL, and LODE rewards from the Nitropool.

Users can still deploy liquidity within custom ranges to earn fees but will not earn incentives.

By voting YES, the DAO accepts to:

Migrate the LODE liquidity from Camelot V2 to Camelot V3 Build the POL within concentrated ranges in Camelot V3 Partner with Gamma to provide Liquidity Management vaults for LODE-ETH LP providers Migrate the Nitropool from the V2 to Camelot V3 managed through Gamma

This proposal will remain on Snapshot for a 5 days voting period