MPG-1┃ Migrate PAR liquidity incentives on Polygon to Uniswap V3

Summary:

We propose to migrate the PAR liquidity to Uniswap V3 to have a better liquidity on the PAR on Polygon.

Context:

Uniswap allows users to concentrate the liquidity in a range, a consequence is that it allows swaps with low slippage and a lower need for liquidity. Before the launch of Uniswap V3 on December 20, 2021. The most efficient DEX on Polygon was Balancer, however today Uniswap V3 provides better swap rates. The aim of this proposal is to migrate the incentives of PAR pools to Uniswap V3.

Rationale:

The goal of this proposal is to migrate PAR liquidity incentives on Polygon to a better efficient DEX, Uniswap V3. This will exclude the PAR/MIMO Balancer pool who will stay on Balancer.

Currently all incentives are on Balancer, but it’s not a very efficient way to have good swap rates between stablecoins. The concentrated liquidity will allow the PAR to sustain a better price with more significant swaps. In addition, increasing the incentive will attract even more liquidity.

Incentives Overview:

There is also a PAR/MIMO Balancer Pool live on Balancer. We propose to keep this pool on Balancer and increase the yield from 7% to 10% of the Polygon emissions.

Currently the PAR/MIMO Balancer Pool is 25/75 weight, we propose to change the weight to 20/80. The weight change will provide a better impermanent loss management.

Means:

The code is already ready to be deployed by the developers. There is no cost change for the treasury.

Technical Implementation:

Staking contracts for UniswapV3 Pools.

Voting Options:

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