Incentive in a form of gas subsidy to convert to LEB8.
Why is this important for RP?
There is a lot (~10600) of minipools that have not converted to LEB8 yet. Having them converted would give RP ~40% growth which I consider important for the protocol. Also, recently we see some shortage in minipools - new MPs cannot cover inflows to deposit pool (it is currently ~80% full).
I propose to assign a part of pDAO budget to gas subsidies for NOs willing to convert at a discount. Few assorted thoughts on implementation:
- it can be fair to prioritize small NOs over large;
- it is possible to have an auction for subsidies to minimize their cost;
- pDAO should send money to a subsidy winner after a conversion has been done;
- subsidy program should be short, and have an end date known at the beginning, so that there were no expectations of extension or round 2 (and thus hesitation to convert) after the program concluded. Rather, it has to create a hype and a FOMO.
Estimated cost (denominated in RPL)
If pDAO to subsidize 100% of gas cost it would cost ~40,000 RPL (assessed with 16gwei gas price, not precise). Given there’s an auction and gas subsidy is partial the cost can be reduced 2-5X.
UPD: Actually, it’s rather hard to convert RPL to ETH at current ratio due to low liquidity. So, I think a subsidy can have a different use. Instead of gas, original RPL can be used as an additional collateral. Since LEB8 minipools require more bonded RPL it can be a bottleneck for some NOs.