Allocate PSTAKE Incentives to bootstrap deeper PSTAKE liquidity

The pSTAKE protocol currently supports liquid staking for three leading PoS networks–Ethereum, Cosmos Hub, and BNB Chain with a combined TVL of ~$8.15M. The PSTAKE token has two major utilities:

1. pSTAKE Protocol Governance pSTAKE Finance is a decentralized protocol. PSTAKE holders can initiate proposals and cast votes to implement changes to the protocol, including but not limited to protocol fees, allocation of the Incentivization & Community Development Fund, stkASSET validator set receiving delegations, and significant improvements to the protocol.

2. stkASSETs Incentivization PSTAKE is also used to incentivize the utility of stkASSETs, such as providing liquidity on DEXs, using stkASSETs as collateral on borrowing lending protocols, and more. Apart from that, PSTAKE is also used to incentivize the token’s liquidity itself.

Currently, PSTAKE is listed on 16 centralized exchanges, including Kraken, Huobi, Bybit & more. The 30d average trade volume on CEXs is ~$970,375. However, PSTAKE has a combined liquidity of only $276,290 on DEXs. ~70% of this liquidity is on Osmosis in the Cosmos Ecosystem. ~28% is spread across PancakeSwap & Thena on the BNB Chain & ~2% on Uniswap on Ethereum.

PSTAKE liquidity on DEXs can be a lot deeper and bring about the following advantages:

1. Adds significant LP utility to the token
2. Eliminate the existing slippage when trading $PSTAKE

This proposal suggests allocating 2M PSTAKE from the Incentivization & Community Development Fund as LP incentives to bootstrap deeper PSTAKE liquidity on Ethereum, BNB Chain & Cosmos in the next 2-3 months.

The initial breakdown of LP incentives for the first month is as follows:

1. 250,000 PSTAKE in the PSTAKE/OSMO pool on Osmosis in Cosmos
2. 250,000 PSTAKE in a new PSTAKE/CAKE pool on PancakeSwap on the BNB Chain

Upon the launch of stkETH v2 in the coming weeks, PSTAKE liquidity will be bootstrapped on Ethereum or an L2 like Optimism/Arbitrum.

Any unspent funds from any particular ecosystem (eg. Cosmos) will only be used to bolster PSTAKE liquidity on another ecosystem (e.g. BNB Chain).

If this proposal passes, 2M PSTAKE tokens will be transferred from the Incentivization and Community Development Fund wallet as follows:

1. Withdraw on Ethereum a. The funds will initially be withdrawn to a 2/3 Ethereum multisig address: 0x3fc53e41C2b2BF279C67c4E1494bFBa9Fd942170 b. The multi-sig holders of the wallet are: Mikhil Pandey (pSTAKE Lead) Aditya Vandkar (pSTAKE Marketing Lead) Maajid Nazrulla (pSTAKE on Cosmos Product Lead)
2. Transfer to Cosmos a. Appropriate funds will be transferred to the ‘pSTAKE on Cosmos Incentivization multisig’, a 2/3 Persistence multi-sig address (persistence1jvl06jjwc62454hznp2andmxdkm0a49eafqq2c) via the Gravity bridge. b. The multi-sig holders of the wallet are: Aditya Vandkar (pSTAKE Marketing Lead) Maajid Nazrulla (pSTAKE on Cosmos Product Lead) Puneet Mahajan (pSTAKE on Cosmos Engineering Lead)
3. Transfer to BNB Chain a. Appropriate funds will be transferred to a 2/3 BNB Chain multisig address: 0xb5F71647C98D9470e3F055884ECA040eeC9a1F33 via the Celer bridge. b. The multi-sig holders of the wallet are: Mikhil Pandey (pSTAKE Lead) Aditya Vandkar (pSTAKE Marketing Lead) Maajid Nazrulla (pSTAKE on Cosmos Product Lead)

The pSTAKE team will ensure that the use of allocated funds is public & kept transparent at all times through the pSTAKE Forum & other channels.

Vote 'FOR' if you agree with the proposed allocation of 2M PSTAKE from the Incentivization & Community Development Fund to bootstrap deeper PSTAKE liquidity.

Vote 'AGAINST' if you disagree with the proposed allocation of 2M PSTAKE from the Incentivization & Community Development Fund to bootstrap deeper PSTAKE liquidity.

Vote 'ABSTAIN' if you do not want to participate in this proposal.