PIP 23: Week 5 Incentive programs

Week 5 Distribution

For Week 5 we are glad to propose the reward of 166,500 DOUGH among all Liquidity Providers to eligible pools.

Rewards would be distributed through the following incentive programs, which include some new elements better detailed below. Specifically:

  • L2 Trading Incentives - We’ll keep running the trading incentives on Loopring’s L2 zkRollup DEX for the pairs $DOUGH/ETH, $DEFI+S/ETH & $DEFI+L/ETH, as detailed here

  • DEFI+S/ETH - the pool will keep receiving 20,000 DOUGH as a weekly reward distributed to LPs which staked their BPTs, proportionally to their BPT share per second.

  • DEFI+L/ETH - the pool will keep receiving 20,000 DOUGH as weekly reward eventually distributed to LPs according to the token geyser logic (deposit-seconds & accrued multiplier).

  • DOUGH/ETH Staking Rewards - the pool will keep receiving 110,000 DOUGH as nominal weekly reward distributed to LPs, of which

    • 85% distributed liquid along the week

    • 15% escrowed within the staking contract, and subject to 52 weeks vesting from the moment they will be claimed

    NOTE:

    • In order to be eligible, Liquidity Providers to the DOUGH/ETH pool will be required to un-stake their BPTs from the current staking contract and re-stake them to the new staking contract (Synthetix) which also includes an escrow pool.

    • The address of the new staking contract will be communicated in the upcoming hours, as soon as deployed.

    • Reward distribution will start on this new staking contract as of today Friday 30th, 4pm UTC

    • The previous staking contract will stop distributing incentives with the closure of Week 4, on Saturday 31st, 7 pm UTC.

  • DOUGH/ETH Migration incentives - The migration of BPTs to this new staking contract will be further incentivized with an additional bonus of 15% of weekly rewards (16,500 DOUGH total), escrowed and subject to 52 weeks vesting as above.

    NOTE:

    • Bonus will ONLY apply for successful migrations of an unvaried amount of BPTs performed by November 6th 00:00 UTC.
    • LPs will be required to log both their BPT un-staking and re-staking transactions with matching amounts of BPTs onto this online form

This new liquid/escrowed incentive distribution model is introduced to effectively bring sustainability to the given rewards. For this reason, it will be proposed to have it further evolving over the following weeks, reaching by Week 8 a target distribution ratio of 52% vs. 48% between liquid & escrowed rewards, respectively.

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DOUGH_ETH pool (1)

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