This is a brief explanation of where and how to benefit from the pDAO funded incentives for providing rETH/ETH liquidty.
Mainnet - Rewards start Sept 8th 00:00 UTC.
Optimism - Currently live with rewards sponsored by Beethoven and set to increase with our contribution.
Balancer rETH/WETH Pool
After you have deposited and received LP tokens you will need to stake them in a Gauge to earn the rewards.
For the majority of people it will be more profitable to stake your LP tokens on Aura Finance rather than in Balancer itself. Note, rewards on Aura ramp up over the course of a week.
Optimism (L2) -
Beethoven X ‘Rocket Fuel’ WETH/rETH Pool
After you have deposited your tokens stake the resulting LP tokens in the gauge, or alternatively you can deposit them in an auto-compounding service such as beefy.
Is there rewards for providing RPL Liquidity?
Not at this time.
Do I receive RPL tokens?
No, you will receive rewards in Balancer BAL tokens / AURA tokens.
I’ve added tokens to the pool, am I done?
Don’t forget to stake the LP tokens in a gauge to earn your rewards!
Will I experience IL (Impermanent or Divergent Loss) ?
As the price of rETH tracks ETH closely increasing at a steady rate, the amount of divergent loss experienced for this pair is very low and predictable. It can be considered neglible compared to the rewards received from incentives.
Do I need to deposit both ETH & rETH?
You may deposit a mix of ETH/WETH & rETH or all of one token single sided but be mindful that if you do so you are swapping part of your deposit for the other token at the pools current ratio with associated trading fees and slippage.
What about withdrawals?
By default you receive a proportional mix of WETH and rETH when you withdraw but you may choose to withdraw single sided in one token or the other, though for large amounts doing so may be disadvantageous depending on the makeup of the pool.
Am I still earning staking yield while in the pool?
Only the part of your deposit which is rETH will be earning staking yield.