TIP-194: LP incentives tapering

id	Title	Status	Author	Description	Discussions to	Created
TIP-194	LP incentives tapering	Draft	Svenska (@0xsvenska)	Tapering of incentives / bribes	discord.gg/thales	2024-01-11

Simple Summary

Additional tapering of incentives and bribes across existing incentivized LPs.

Abstract

This TIP proposes additional tapering of AMM incentives and bribes across all existing incentivized LPs.

Current reward structure is:

• Optimism Arrakis THALES/WETH pool incentives: 20,000 THALES + 2,000 OP per week
• Optimism Velodrome THALES/WETH pool bribes: 6,000 THALES per week
• Base Aerodrome THALES/WETH pool bribes: 7,000 THALES per week
• Arbitrum Camelot THALES/WETH pool incentives: 5,000 THALES per week

New reward structure to be:

• Optimism Arrakis THALES/WETH pool incentives: 18,500 THALES + 1,000 OP per week (7.5% on THALES & 50% on OP reductions)
• Optimism Velodrome THALES/WETH pool bribes: 5,500 THALES per week (~10% reduction)
• Base Aerodrome THALES/WETH pool bribes: 5,000 THALES per week (~30% reduction)
• Arbitrum Camelot THALES/WETH pool incentives: 5,000 THALES per week (no change)

These emissions are to run for 8 weeks until further revaluation.

Motivation

Currently, THALES onchain liquidity is relatively deep and more than sufficient, at over $5m TVL. This includes Protocol Owned Liquidity. Due to recent $OP price action, we can heavily decrease these rewards on the THALES/WETH Arrakis pool. Given our THALES/USDC pool was deprecated per TIP-180 (https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-180.md) and our veVELO reallocated towards our THALES/WETH pool, this Velodrome pool is quite efficient lately. Volume is constantly pretty low on the Base Aerodrome THALES/WETH pool, we can decrease incentives allocated there.

Specification

This TIP entials the Thales Protocol DAO and Treasury DAO to facilitate the following emissions:

• Optimism Arrakis THALES/WETH pool incentives: 18,500 THALES + 1,000 OP per week
• Optimism Velodrome THALES/WETH pool bribes: 5,500 THALES per week
• Base Aerodrome THALES/WETH pool bribes: 5,000 THALES per week
• Arbitrum Camelot THALES/WETH pool incentives: 5,000 THALES per week

The incentives in this proposal are to be valid for a period of 8 weeks from implementation.

Implementation

n/a

Copyright

Copyright and related rights waived via CC0.