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Title: Increase Staking Rewards Sponsor: Felix / f.wiegandt@wiebec.eu Created: 04-26-2021 (1597145321) Version: version no. 1 Ballot Type: Approval Ballot Voting Period: 4 days Staking Address: Exempt from the staking requirements per SNC-2019.02/Article VII.B.10

Proposal to increase the staking rewards for 1 month

Description of the proposed Governance Action

Current Situation: Current Staking Rewards are 2.26% for Pool 1 (SWM) and 29.19% for Pool 2 (UNI-V2-ETH-SWM). We have liquidity of approximately $1 million on Uniswap. To increase liquidity on Uniswap, I recommend doubling the staking rewards for one month.

Purpose and rationale for the Governance Action and its intended outcomes

Adding liquidity on Uniswap can lead to impermanent loss, which is probably why many investors do not want to add liquidity on Uniswap.

However, high liquidity has the advantages of allowing traders to buy and sell assets quickly and at any time within market hours. This is often associated with reduced risk, as market participants can quickly withdraw from their positions without substantially affecting the price of the asset. In addition, high liquidity is characterized by more stable prices and higher levels of efficiency.

Increasing staking rewards creates a greater incentive to add liquidity on Uniswap.

Identify the specific uses for which Swarm Treasury funds may be expended to support the Governance Action;

Currently 117k per month of $SWM is used for Staking Rewards. Doubling the Staking Rewards for one month equals 234k $SWM. Thus, 234k $SWM would need to be used if the proposal is approved

Additional information for Governance Actions requiring the expenditure of Swarm Treasury funds

License

Copyright and related rights waived via CC0.