Gearbox DAO

This proposal is aimed at harmonizing the V3 launch and some liquidity parameters related to it. The objective of the proposal is to act on a few data points and thus improve the state of V3 as the migration process is under way, successfully so far. The result would lower emissions in GEAR in the process of potentially driving the emissions to 0% in 2024.

1. Fully remove V2 dWBTC LM. There is currently no utilization, and it’s not needed there. Any passive lender on V2 WBTC can move over to the V3 side. The reason for the WBTC pool existence is to allow traders to either short WBTC or long other coins relative to it (for example, ETH/BTC ratio). Whether that becomes interesting or not is TBD after the product push from mid-end January.
2. Fully remove V2 WETH LM. That is because V3 Credit Managers can already handle most of the positions that can migrate to V3 from V2. Most of them are in stETH farming, which V3 already can support: https://app.gearbox.fi/strategies/list.
3. Remove V2 dDAI and dUSDC by 50% in V2. Rates are now better for migration in V3. The other 50% can be removed as soon as V3 Credit Managers can support the other farms for migration, to make sure users don’t have to churn out and have more options than the base functionality mentioned in GIP-86! Planned to be in January.

This will cut emissions overall by about 30%, which is approximately (since last summer) would be down from 2.6% yearly emissions for passive lending- to about 1.5%. And the goal is to drive that number to 0%, replacing it with organic rates and better leverage opportunities. In USD terms, that cuts emissions from $2.6M to $1.5M a year!