BarnBridge

Over the past few weeks, the core team and community have discussed how to go about incentivizing the C.R.E.A.M. and AAVE integrations for SMART Yield that are launching imminently. These conversations have been quite informative in both the depth of their feedback and the breadth of community participation. The primary takeaways from these conversations have been:

• cUSDC incentivization has demonstrated that subsidies attract TVL, and it behooves the protocol to make use of amenable market conditions (e.g. AAVE liquidity mining rewards, heightened borrowing demand) to go for a TVL land grab at this time

• More sophisticated incentivization mechanisms are possible

• Optimizing for TVL makes sense for protocol revenues, but there are other metrics - namely, secondary market liquidity - that warrant consideration

With this feedback in mind, this SnapShot vote is meant to assess community sentiment for the following subsidization 10-week schedule:

• For C.R.E.A.M.: – USDC: 500 BOND / week – USDT: 250 BOND / week – DAI: 250 BOND / week

• For AAVE: – USDC: 10,000 BOND / week – USDT: 4,000 BOND / week – DAI: 2,500 BOND / week – GUSD: 500 BOND / week

These allotments are roughly in line with the respective liquidity of each asset on both platforms. 10 weeks was chosen as the ideal duration for this style of subsidy as it will provide enough time to see which originators garner the most traction, as well as to determine what subsequent subsidy programs should look like.

Voting “Yes” indicates your support for provisioning 180,000 BOND for this effort; “No” would not.

Please refer to the following links for further background on this discussion:

• Forum Conversation #1: https://forum.barnbridge.com/t/incentivizing-smart-yield-pools/227
• Forum Conversation #2: https://forum.barnbridge.com/t/bond-subsidies-for-c-r-e-a-m-and-aave/260
• BarnBurner, May 9th Edition: https://barnburner.substack.com/p/barnburner-may-9th-2021