| id | Title | Status | Author | Description | Discussions to | Created |
|---|---|---|---|---|---|---|
| TIP-31 | Increase of THALES/WETH G-UNI LP rewards and deployment of Olympus Pro bond on Optimism L2 | Implemented | padzank (@padzank) | Increase of THALES/WETH G-UNI LP rewards on Optimism L2 and deployment of Olympus Pro bond | https://discord.gg/rPpPcMXSeU | 2022-03-01 |
This TIP proposes to increase the rewards for L2 THALES/WETH liquidity providers and to deploy THALES/WETH bonds on Olympus Pro on Optimism to further incentivise and accelerate transition of liquidity from L1 to L2
The old L1 LP incentive program in place on Dodo exchange, that uses the old token contract, is ending on Friday Mar 4. With L1 liquidity provider (LP) incentives coming to an end, this TIP proposes to further boost LP rewards for the THALES/WETH G-UNI pool on Optimism by additional +15,000 THALES tokens weekly, which would bring total weekly rewards for liquidity providers on Optimism to 50,000 THALES weekly (~+40% increase in total emissions). The goal is to further incentivise transition of liquidity providers from L1 to L2.
Additionally, this TIP proposes to deploy Olympus Pro bond system for THALES/WETH G-UNI LP providers on Optimism which will have 2000,000 THALES tokens allocated for the duration of one month, vested for 14 days, available for bond purchasers. This will offer liquidity providers two choices of how to utilize their LP tokens, it will further increase protocol owned liquidity and additionally move the risk of IL from LPs to the protocol itself while also being equally awarded with THALES tokens.
As of writing this TIP, exactly 1 month elapsed from the THALES token migration and the launch of liquidity incentives on Optimism. The time has come to further accelerate the liquidity transition from the old token on L1 to the new THALES token on L2. Extension of DODO rewards on L1 are ending March 4th and will effectively mark the end of liquidity support for the old THALES token on L1. This provides the most opportune time to act on introducing more incentives for providing liquidity on Optimism.
Introducing Olympus Pro infrastructure for THALES/WETH G-UNI LP tokens introduces clear benefits for community liquidity providers. Compared to classic LP staking incentives, LPs who bond their LP tokens in exchange for discounted THALES tokens will remove any impermanent loss risk that is present in the classic liquidity mining system. Benefits to the protocol are that, instead of exclusively only renting out liquidity, the protocol would be acquiring liquidity from bond purchasers. This system increases the safety of long-term liquidity that will be in the ownership of the protocol itself. With this introduction, THALES/WETH LPs using the G-UNI framework on Optimism will have additional choice of utilizing their LP tokens for THALES rewards, with both options coming with their own respective trade-offs.
With both Liquidity Mining and the Bond system using the same THALES/WETH G-UNI LP tokens, liquidity providers can provide liquidity first and then decide which program they wish to utilize with their existing LP tokens, without the friction of needing to hop liquidity around.
-
This TIP entails the Thales Protocol DAO to increase THALES rewards towards THALES/WETH G-UNI LP token stakers, from 35,000 to 50,000 THALES tokens weekly for the remainder of the liquidity mining program (5-6 weeks left since writing this TIP)
-
This TIP additionaly entails the Thales Treasury DAO to facilitate the deployment of THALES/WETH bonds market on Olympus Pro seeded with 200,000 THALES tokens for a period of one month, and with 14 day vesting for rewards.
n/a
n/a
n/a
Copyright and related rights waived via CC0.