Skip to content

Latest commit

 

History

History
47 lines (27 loc) · 2.52 KB

TIP-180.md

File metadata and controls

47 lines (27 loc) · 2.52 KB
Raw
id Title Status Author Description Discussions to Created
TIP-180 Removal of Incentives from THALES USDC Pools Draft degeneratoor This TIP proposes the discontinuation of incentives for THALES-USDC liquidity pools across all chains to prevent resource waste and consolidate liquidity provision efficiency. 2023-11-07

TIP: 180 - Removal of Incentives from THALES-USDC Pools

Simple Summary

This TIP proposes a systematic reduction of incentives for THALES-USDC liquidity pools on Velodrome and Aerodrome platforms by 20% per week.

Abstract

The proposal is to decrease the rewards allocated to THALES-USDC pools on Optimism Velodrome and Base Aerodrome by 20% each week, starting from their current levels.

Motivation

The aim is to optimize resource allocation and increase liquidity provision efficiency across platforms. This gradual reduction approach aligns with the broader strategy of the Thales Protocol to balance incentive distribution and resource utilization.

Specification

The following liquidity pools will be subject to incentive reductions:

  • Optimism Velodrome THALES/USDC pool: Starting from 6,000 THALES per week.
  • Base Aerodrome THALES/USDC pool: Starting from 3,000 THALES per week.

The total incentives for these pools will decrease by 20% weekly. The Velodrome pool will see a reduction of 1,200 THALES a week, and the Aerodrome pool will decrease by 600 THALES a week.

  • week 1: Velo 4800 THALES, AERO 2400 THALES
  • week 2: Velo 3600 THALES, AERO 1800 THALES
  • week 3: Velo 2400 THALES, AERO 1200 THALES
  • week 4: Velo 1200 THALES, AERO 600 THALES
  • week 5: Pools are depleted

This reduction process will continue each week, with the specified amounts of 1,200 THALES for the Velodrome pool and 600 THALES for the Aerodrome pool being subtracted from each respective pool's total weekly, until the pools are depleted.

Rationale

Implementing a gradual reduction of incentives allows for a smoother transition and provides market participants with time to adjust to the new incentive structure. This phased approach is designed to maintain a healthy liquidity level while ensuring the efficient use of protocol resources.

Implementation

Upon the approval of this TIP, the following actions will be implemented:

  • Initiate the incentive reduction in the next rewards cycle following this TIP's acceptance.
  • Communicate the changes and their implications to all stakeholders in a timely manner.