PieDAO

Relevant discussion can be found here https://forum.piedao.org/t/doughpamine-incentives-program/752/31

Summary

As part of the DeFi Indices revamping initiative the DAO planned to cease the current incentives on both the DeFi+S/ETH and DeFi+L/ETH pools on Balancer. A revised allocation of DOUGHpamine incentives is therefore proposed

Passing Thresholds:

-> 5% or more of veDOUGH supply must participate -> 60% or more of participating tokens must vote FOR

Opportunity

-> Reduction of the annual avg. cost for $ of incentivised liquidity -> Promotion of more capital-efficient incentives

Proposal

As part of the DeFi Indices revamping initiative the DAO has planned to cease the current incentives on both the DeFi+S/ETH and DeFi+L/ETH pools on Balancer. Here below a summary of current incentives paid by the DAO (20% liquid, 80% escrowed).

It looks evident how, despite the overall shrinking of the liquidity provided by LPs, the weighted average annual “cost” (aka. incentives) for single $ of liquidity provided sits at $0.71, reaching picks of $1.52 for pools as the PLAY/DOUGH on Sushi. These incentives clearly account for a big portion of the residual DOUGH selling pressure on the market.

As a first step in the direction of better preserving the overall DOUGH value, I’m proposing the following:

1) Reduction of the annual avg. cost for $ of liquidity to an initial target of $0.60 (see allocation below)

2) Promotion of the BCP pool (staked BCP - single side) with increasing incentives base on the # of units of BCP staked. BCP represents in fact the main liquidity smart-pool for DEFI++, so in light of the upcoming promotion/rebranding of our own DEFI index it could be wise to better incentivise its liquidity provision, which clearly comes with NO IMPERMANENT LOSS for LPs, while also representing a concrete opportunity for them to collect swap fees from the 3 pairs represented (DEFI++ <> ETH, DEFI++ <> wBTC, wBTC <> ETH).

By considering its annual cost of liquidity, it’s quite evident how BCP represents the most capital-efficient liquidity pool incentivised by PieDAO, hence this proposal.

NOTE: Nominal DOUGH issuance will keep being subject to the deflationary trend voted as part of the DOUGHpamine program (5% reduction every 200k blocks).

Do you support the proposals above?