TIP-159: Optimal Liquidity Strategy on Velodrome

Voting ended over 2 years agoSucceeded

id	Title	Status	Author	Description	Discussions to	Created
TIP-159	Optimal Liquidity Strategy on Velodrome	Draft	MΞthodic (@0xmethodic)	Create a PoL position on the USDC pool on Optimism with Velodrome	discord	2023-08-01

Simple Summary

Allocate treasury assets towards a POL position on Velodrome and increase THALES rewards for THALES/USDC pool slightly to take advantage of Velodrome’s incentives efficiency and achieve a net profit strategy

Abstract

On Optimism, Thales is currently incentivizing the following amounts on the respective platforms:

Arrakis THALES/WETH pool incentives: 2,500 OP + 24,000 THALES per week (~$15K)
Velodrome THALES/USDC pool incentives: 6,000 THALES per week (~$2.7K)
Velodrome THALES/WETH pool incentives: 6,000 THALES per week (~$2.7K)

In addition, Thales recently passed a proposal to allocate about $350K worth of treasury assets towards a Protocol Owned Liquidity (POL) via Arrakis PALM.

This proposal aims to Optimize Thales’ liquidity strategy on Velodrome team to reduce reliance of incentives and THALES emissions over time by:

Depositing a $200K POL position on the THALES/USDC pool: 230K THALES & 100K USDC
Update Velodrome THALES/USDC pool incentives to: 725 OP + 9,000 THALES per week (~$5K)

These emissions are to run until further revaluation by the Thales Governance Structure.

Specification

This TIP entails the Thales Protocol DAO and Treasury DAO to facilitate the following emissions and POL changes:

Deposit and stake $200K of THALES/USDC POL (230K THALES & 100K USDC) on Velodrome to capture VELO emissions
Update Velodrome THALES/USDC pool incentives to: 725 OP + 9,000 THALES per week

$VELO emissions collected with POL will be locked into Thales' veNFT every week.

Rewards collected with POV are to be compounded into additional POL. The incentives in this proposal are to be valid until further revaluation from implementation.

Test Cases

N/A

Implementation

TBD

Copyright

Off-Chain Vote

YES

6 TC-NFT85.7%

1 TC-NFT14.3%

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Timeline

Aug 11, 2023Proposal created

Aug 11, 2023Proposal vote started

Aug 14, 2023Proposal vote ended

Nov 29, 2025Proposal updated

Title

Status

Author

Description

Discussions to

Created

TIP-159

Optimal Liquidity Strategy on Velodrome

Draft

MΞthodic (@0xmethodic)

Create a PoL position on the USDC pool on Optimism with Velodrome

discord

2023-08-01

Abstract

On Optimism, Thales is currently incentivizing the following amounts on the respective platforms:

Arrakis THALES/WETH pool incentives: 2,500 OP + 24,000 THALES per week (~$15K)

Velodrome THALES/USDC pool incentives: 6,000 THALES per week (~$2.7K)

Velodrome THALES/WETH pool incentives: 6,000 THALES per week (~$2.7K)

In addition, Thales recently passed a proposal to allocate about $350K worth of treasury assets towards a Protocol Owned Liquidity (POL) via Arrakis PALM.

This proposal aims to Optimize Thales’ liquidity strategy on Velodrome team to reduce reliance of incentives and THALES emissions over time by:

Depositing a $200K POL position on the THALES/USDC pool: 230K THALES & 100K USDC

Update Velodrome THALES/USDC pool incentives to: 725 OP + 9,000 THALES per week (~$5K)

These emissions are to run until further revaluation by the Thales Governance Structure.

Specification

This TIP entails the Thales Protocol DAO and Treasury DAO to facilitate the following emissions and POL changes:

Deposit and stake $200K of THALES/USDC POL (230K THALES & 100K USDC) on Velodrome to capture VELO emissions

Update Velodrome THALES/USDC pool incentives to: 725 OP + 9,000 THALES per week

$VELO emissions collected with POL will be locked into Thales' veNFT every week.

Rewards collected with POV are to be compounded into additional POL. The incentives in this proposal are to be valid until further revaluation from implementation.