TL-DR: Reduce and stop LM in the palStkAave module and move it to the Balancer pool
As stated in PuRe 1 2, confirmed in PGP-4 and extended in PGP-12, we regularly update our LM program.
Reminder : The LM campaign was created to push the deposit pools to proposal threshold, this goal hasn’t been reached yet, the stkAave pool is currently experiencing stalled TVL. The new stkAave code should only be live end of Q4, in the meantime, we need to allocate the LM in a more efficient way as the market is bleeding pretty hard and most PAL dumped comes from palStkAave LM.
The current LM allocates 100,000 PAL / month to the palStkAave pool. While this was reasonable during a bull market, it is impossible to manage in a bear market as it is a pool that drives no revenue. Furthermore, most emissions dumped are happening on this vault.
This represents 60% of our LM for 0 revenue while we are being net positive one the emissions on Quest. By moving our palStkAave/Aave pool on Balancer we aim to merge both incentives program and move the incentives from the vault to the pool (via Quest) over the next 6 weeks in the following fashion:
- 11/10 - 18/10 → 80% in the vault & 20% in Quest
- 18/10 - 25/10 → 70% in the vault & 30% in Quest
- 25/10 - 01/11 → 50% in the vault & 50% in Quest
- 01/11 - 08/11 → 25% in the vault & 75% in Quest
- 08/11 - 15/11 → 10% in the vault & 90% in Quest
- 22/11 onwards → 100% in Quest
Yes / No / Abstain