[SIP - 42] Enhancement of SYN/ETH liquidity on L2s
Summary:
As Synapse Protocol enters its next phase of development it is crucial that we maintain deep SYN liquidity for protocol health and to provide token holders efficient on-chain avenues for trading the token.
Implementation:
- Incentivize a SYN/WETH pool on Optimism on Velodrome, with 50k $OP allocated for this
- Decrease SYN min fees between L2s to increase composability.
- Distribute incentives over a 3-month period to bootstrap initial liquidity
Considerations:
Target $3-5M in TVL to ensure efficient price discovery and trading. After the 3 month period, emissions should be re-evaluated based on pool volume, total TVL. If the pool has not reached the TVL target, we should reassess the venue and incentive strategy, while if the TVL target is reached and/or available liquidity achieves effective pricing for swaps on optimism, the incentive program should be continued
Discussion Details: https://forum.synapseprotocol.com/d/2086-syneth-liquidity-enhancement-proposal
Off-Chain Vote
Timeline
Dec 13, 2024Proposal created
Dec 13, 2024Proposal vote started
Dec 16, 2024Proposal vote ended
Dec 16, 2024Proposal updated