DIP-12: Adjustment of Liquidity Mining Incentives on Select Pools

English Proposals
1

Motivations

DODO has deployed on 10 different chains, 7 of which have liquidity mining incentives, with a combined TVL of around $300M and a combined daily trading volume of around $200M.

Compared to Uniswap, Curve and other Dex, DODO has a lot potential for TVL growth. Following DODO’s multi-chain deployment strategy, liquidity mining incentives have been rolled out on multiple chains in order to kickstart their liquidity. However, DODO token emission has been increasing following our multi-chain expansion and token migrations. Therefore, the evaluation of the TVL and trading volume growth compared to DODO token emission is very important - the purpose of it being to increase the efficiency of token emission which we believe benefits all DODO stakeholders.

Specification

In recent weeks, we have analyzed TVL and trading volumes of all our active liquidity mining pools and compared the cost of renting liquidity with DODO. Based on this research, we propose to adjust the following liquidity mining incentives on multiple chains:

  • Ethereum:
    • WETH-USDC: reduce from 2 DODO/Block to 0.25 DODO/Block
    • WBTC-USDC: reduce from 2 DODO/Block to 0.5 DODO/Block
  • BNB Chain:
    • DODO-WBNB: reduce from 0.3 DODO/Block to 0.15 DODO/Block
  • Arbitrum:
    • WETH-USDC: end all liquidity mining incentives
    • WBTC-USDC: reduce from 0.5 DODO/Block to 0.2 DODO/Block
    • DODO-USDC: reduce from 0.3 DODO/Block to 0.15 DODO/Block
  • Aurora:
    • USDT-USDC: increase from 0.1 DODO/Block to 0.16DODO/Block
    • DODO-USDC: reduce from 0.1 DODO/Block + 0.007 NEAR/Block to 0.02 DODO/Block + 0.003 NEAR/Block
    • ETH-WNEAR: new incentive pool with 0.01 DODO/Block + 0.002 Near/Block
    • USDC-WNEAR: new incentive pool with 0.01 DODO/Block + 0.002 Near/Block
  • Polygon:
    • USDC-USDT: reduce from 0.44 DODO/Block to 0.3 DODO/Block
    • DODO-USDT: reduce from 0.11 DODO/Block to 0.05 DODO/Block
  • Moonriver:
    • USDT-USDC: reduce from 0.0025 WMOVR/Block to 0.0015 WMOVR/Block
    • DODO-USDC: reduce from 0.0025 WMOVR/Block to 0.0010 WMOVR/Block
    • WMOVR-USDC: reduce from 0.5 DODO/Block to 0.25 DODO/Block
    • ETH-WMOVR: reduce from 0.5 DODO/Block to 0.25 DODO/Block

The detailed pool statistics used in our analysis are attached here.

poolnumbers
poolnumbers2308×1368 421 KB

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Voting Period: March 25, 2022 at 1:00 PM to March 28, 2022 at 1:00 PM SGT