Liquidity Mining Adjustment #2

TL-DR : Reducing UNI pool allocation, removing borrow incentives and extending the campaign by a month.

Context :

As stated in PuRe 1, and confirmed in PGP-4 we have gathered data to optimize the distribution of PAL for deposits for the past month.

Reminder : The LM campaign was created to push the deposit pools to proposal threshold, this goal hasn’t been reached yet, but the stkAave pool is still growing exponentially and we want to use this opportunity to make palStkAave the default wrapper.

The StkAave pool more than doubled in January surpassing 15,500 tokens with no signs of stopping its growth.

The Aave, Compound and Idle pools were not affected by the reduction of PALs allocated but the UNI pool grew by 30%.

Proposal :

  • Reduce UNI pool to 50k PAL / month ;

  • Allocate another 20k PAL / month for palStkAave integration (Curve v2 palStkAave pool) ;

  • Remove borrowing incentives for Paladin Lending ;

  • Extend the LM campaign for a month.

Rationale :

We want to keep supporting the explosive growth of the stkAave pool by incentivizing other integrations such as our Curve v2 pool.

Means :

None outside of gas spendings to adjust mining output.

Sustainability :

We’re currently developing a Liquidity Mining program for Warden and will push resources there once it’s ready. Depending on how Paladin Lending fares we will keep focusing on the stkAave pools.

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