RFC: ShUIP/Liquidity Mining for SHELL Pool

TITLE

RFC: ShUIP/Liquidity Mining for SHELL Pool

OVERVIEW

Proposal Title: Liquidity Mining for SHELL and strSHELL Pools Author(s): Cairo Smith
Category: ShUIP Related Discussions:

DETAILS

Summary:
Allocate 1,000 SHELL per day from the DAO treasury to SHELL+ETH pool liquidity mining rewards for 100 days.

Link to Transaction Payload PR:
N/A

Motivation:
To increase SHELL+ETH liquidity through incentivization.

Vision:
LPs in SHELL+ETH will be rewarded with a fixed amount of 1,000 SHELL each day, distributed proportionally to LP token holders. This will encourage LP, benefiting all.

Specification:

1. Allocate 100,000 SHELL total as rewards.
2. Rewards are distributed to LPs every month.

Benefits (Pros):

• More liquidity and price discovery.
• Rewards for LPs.

Downside (Cons):

• DAO expenditure.
• IL risk for LPs.

Overall Cost:
100,000 SHELL and marginal administrative costs for Cowri.

Timeline:
1,000 SHELL per day earned proportionally by SHELL+ETH LPs from February 27 to June 6, 2024. This means that some of the rewards will be retroactively applied, if the vote passes.

VOTING OPTIONS

Abstain: Neutral stance contributing to quorum.

No: Opposes allocating SHELL for rewards as written.

Yes: Supports the rewards program as written.