Summary

Use PDD funds (https://debank.com/profile/0xd2be17cf9ee45cac70264316614180ec608cd856) to provide early vote incentives for USG pools.

Proposal

We propose using the PDD funds ($50k) to issue vote incentives on Votemarket (https://votemarket.stakedao.org/curve) for USG pools (USG/USDC & USG/frxUSD).

As mentioned in the docs, up to 50% of the protocol’s revenues will be allocated to voting incentives. However, we need to kickstart incentives before the CDP is live to provide CRV rewards for the pre-deposit campaign. Thus, the PDD funds would be used for 4 to 6 weeks to provide initial voting incentives.

Rationale

The CDP will be live 2 weeks after the beginning of the pre-deposit campaign, which means that we will be able to issue vote incentives from revenues only 3 weeks after (we need a full week of accumulation). Using PDD funds will ensure attractive incentives on our pools.

According to the Redemption vs Transition to Tangent vote that was held in August 2024, these funds were meant to be used as a compensation fund for affected CVG users. However, we now estimate that using them for vote incentives is wiser, as it would allow us to support a strong bootstrapping of USG liquidity, thus ensuring a healthy launch for the CDP (notably regarding its ability to absorb leverage).

According to our computations, the compensation would represent approximately $0,0023 per CVG. A user who held 100,000 CVG would get $230 back (team tokens are excluded from the compensation).

Vote Options

1- Adopt the proposal 2- Reject the proposal 3- Abstain