SIP-6 | New incentivization system for sprMAV Staking and Liquidity

Summary: This proposal aims to establish the plan for deployment of the initial sprMAV liquidity and the incentives allocated to bootstrap it.

Context: Following the launch of Spiral’s first liquid locker for Maverick’s MAV governance token, the protocol successfully attracted around 500k MAV TVL and fast became 25% of the total veMAV share, allowing us to draw projections on the share of upcoming MAV airdrop captured by the protocol.

The previous proposal relative to sprMAV incentivization (STP-4) introduced the distribution of preminted sprMAV tokens to MAV depositors during the Maverick Incentive Program Season 1. The distribution was stated to occur in three stages, using a hybrid model of direct distribution and progressive incentives.

In order to further bootstrap MAV deposits into the liquid locker as well as liquidity depth in the several sprMAV wrapper pools deployed, an incentive program based on sprMAV emissions backed by treasury assets and future airdrop shares was defined with the parameters detailed below :

As reminder from the SIP-3:

• Allocating some of the Treasury assets to the pools on Maverick as a part of Spiral’s Treasury Management strategies.
• Allocating a portion of our COIL/USDC POL to Maverick.
• Allocating part of our Treasury composition for accumulating MAV aiming at 4% weight to start

Additional important parts that aren’t covered in SIP-3, but should be added:

• As after the CRV OTC deal we’ve increased our backing dramatically, we propose to initiate a small COIL buyback to get the current price in the range of 7-10% below the new backing.
• To address the redemption being empty, we propose to implement a new redemption pool as a liquidity backstop for COIL/USDC on Maverick and to deploy it temporary in the range of -15% of the new backing current backing. This way we would be effectively farming the Maverick Season 1 for liquidity providers.

This proposal scope is one month. However, we might change it in a few weeks to better adjust the liquidity program to better share the liquidity or to introduce the voting emission power for sprMAV.

Maverick Pools parameters sprMAV/USDC Fee: 0.4% Range: 5%

sprMAV/MAV Fee: 0.04% Range: 0.10%

Treasury will seed the liquidity in all the pools in a static mode for all three pools. The structure of liquidity for the booster position LP on maverick should be the following:

• sprMAV/USDC should have a Both modifier tight around the current liquidity with a total range of 10-30%
• sprMAV/MAV liquidity should be incentivized in the range of 0.9-1.05 in a static mode with a deeper concentration of liquidity around 1

Incentivization allocation As mentioned in the SIP-3, the Treasury Multisig will mint sprMAV to incentivize the initial liquidity, the first plan was to distribute 2k sprMAV per day, but after more internal discussion, we believe that 3k sprMAV a day could boost liquidity even further.

• sprMAV/USDC : 25% - 750 sprMAV daily
• sprMAV/MAV : 35% - 1050 sprMAV daily
• sprMAV single staking : 40% - 1200 sprMAV daily

To sustain this incentivization, we will mint additional sprMAV on our Spiral Treasury to cover this 90k for the next month.

Means:

• Human resources: Multisig signers will have to do several Tx, no code is required.
• Treasury resources: We’ll have to acquire MAV, and USDC will be used to seed the three Maverick pools. (COIL/USDC, sprMAV/USDC, sprMAV/MAV)

Technical implementation: The Treasury multi-sig team will have to do several Tx :

• Mint sprMAV
• Buyback COIL to the desired levels
• Create and seed the sprMAV/MAV liquidity on Maverick
• Create and seed the sprMAV/USDC liquidity on Maverick
• Launch sprMAV incentives on these pools + single staking pool
• Create and seed the COIL/USDC liquidity on Maverick with the redemption addition

Voting options:

• Yes, start liquidity and incentive
• No, rework the proposal
• Abstain