p18-1-4 Approve the amount of incentives in DEN token on the 4eur pool and DEN-4eur pool

PROPOSAL SUMMARY

I’m writing this proposal because I would like to submit new incentives amounts on the 4eur pool.

Indeed, Curve has recently updated its documentation about factory pools, you can find it here: https://resources.curve.fi/faq/pool-factory This new documentation recommends to have a TVL of at least 3 millions $ on the pool to be listed on the mainUI and to be able to ask for a gauge. This is 3 times more than the $1 million we originally planned.

I also think we should increase the length of the incentive originally planned on the pool as it may allow us to take more time to request the Curve governance gauge. I propose to increase the duration of the incentive from 45 days to 60 days.

With the help of newbieone, I have done some calculations to determine the incentive amount to reach $3 million TVL on the pool. However, we are aiming for a TVL between $4 and $5 million. The calculations that we made are based on the incentives already in place on KyberDMM. We made these calculations with the objective of having a 40% APR with $3 million TVL during 60 days. We calculated that in order to have $3 million in TVL for 60 days we would need to spend $3,250 per day on the 4eur pool, resulting in $195,000 in incentives for 60 days. If we calculate the APR over 1 year, this gives 39% APR for $3 million in TVL.

Another way to boost APR is to create a factory pool including the DENARIUS (name of the token backed by $JRT, $UMA and $MIMO) and the 4eur pool on Curve polygon and then to incentivize it as DENARIUS token. Putting incentives on this pool would increase the price of the DEN because people will want to buy the token to earn rewards, thus increasing the APR on the 4eur pool. Based on the incentives on KyberDMM we calculated that to have a TVL of $200,000 during 60 days with a APR of 90% we would have to spend $500 per day, or a total of $30,000 in incentives on the DEN-4eur pool.

To start the pool we propose that the treasury add $5,000 in DEN tokens and $5,000 in 4eur pool.

This would bring us to $230,000, but after discussions with the Mimo team we agreed that Mimo would pay 50% of the total incentives in $MIMO which would be included in the $DEN token.

We decided to rework the incentives to maximize our chances of getting a gauge in the Curve governance vote as well as to maximize the incentives. This may seem like a lot, but these incentives will take place over 60 days. Knowing also that the treasury receives 1700 $UMA each week, that is to say approximately 100 000$ per week, these incentives would be paid back in 10 days.

Recap of incentives Total: $230,000 (100 $DEN)

• Mimo → $115,000 (50 $DEN) -> 97,500 in $DEN token on pool 4eur -> 17 500 in $DEN token on the DEN-4eur pool
• Jarvis → $115,000 (50 $DEN) -> 97,500 in $DEN token on the 4eur pool -> 12,500 in $DEN token on the DEN-4eur pool -> 5,000 in $DEN token to seed the DEN-4eur pool (with $5,000 of 4eur from the treasury)

VOTE

1/ Approve: Approve the total spending of $230,000 during 60 days with $115,000 came from the Jarvis treasury 2/ Reject: Reject the total spending of $230,000 during 60 days, with $115,000 came from Jarvis treasury.