| id | Title | Status | Author | Description | Discussions to | Created |
|---|---|---|---|---|---|---|
| TIP-85 | 0 | Implemented | Ramblers & Red | Redistribute 5k Thales weekly reward from Arrakis to Velodrome | https://discord.com/channels/906484044915687464/1016487086339137686 | 2022-09-06 |
This TIP proposes a plan to streamline current liquidity incentives for the protocol to run side by side, expand our THALES/USDC liquidity, and take advantage of added Velodrome OP bribes without increasing emissions. With Thales being granted a large voting veVelo share (4m votes as of July 2022), Thales is in a unique position to attract some of the best yield to any pool we choose while also collecting large amounts of bribes and trading fees.
Upon a successful vote, the current Arrakis incentives (45k Thales weekly to THALES/WETH pool) as well as the Velodrome bribes (5k Thales weekly to THALES/USDC pool) would both end and be replaced with this program beginning at the same time. With the Arrakis program winding down in three weeks, a temporary increase of 5k Thales in bribes to Velodrome would happen immediately. This new program would be 10 weeks long and provide 40k Thales to the Arrakis THALES/WETH pool and 10k Thales to the THALES/USDC pool. Thales would use our veVelo NFT voting power to vote for the THALES/USDC pool each week and claim our weekly rewards. Every week Thales would claim their rewards. Velo portion would be lock every week for 4 weeks, while the OP tokens claimed would be added to next week's bribe. There is also potential to capture a large amount of trading fees from the THALES/USDC pool as 100% of all trading fees are given to the pool voters. While this is a negligible amount now, it has the potential to make a large impact with deeper THALES/USDC liquidity and increased protocol usage.
Both Arrakis and Velodrome have provided Thales with liquidity options. It is a good idea to continue to heavily incentivize liquidity while deepening our THALES/USDC pool during this time of market uncertainty. Velodrome provides a very efficient option to do this. And while being a recipient of the Optimism Foundation Partner Fund Grant is also currently adding OP tokens to all bribes.
This TIP entails that Thales Protocol DAO is to redistribute 5,000 Thales weekly reward from the Arrakis Thales/WETH pool towards the ETH/USDC Velodrome pool bringing the overall pool to 10,000 Thales weekly rewards for a duration of 10 weeks. Thales Protocol DAO is to claim weekly rewards from the velodrome pool using the veVelo NFT and proceed to add OP rewards to the following week's bribe and lock the VELO rebase for 4 years.
After discussion with the community it was decided that Thales would move away from buyback and burn idea to rather lock and rebase the weekly rewards.
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