IMC Period 17/18 Reports; Period 18/19 Budgets

Hello again community – it’s me, your oft-delinquent IMC treasurer with a look at everything since the period 17 budget. Full spreadsheet is at IMC tracking - Google Sheets

Period 17 Report

Period 18 Budget

  • Stakewise spun up a Curve pool between osETH and rETH. This is quite cool as all the assets are yielding :tada:, so the need for incentives is smaller.
    • This is most beneficial for Stakewise, as it lets them tap our much-larger liquidity routes; however, it also presents a benefit to us cuz it’s darn efficient.
    • The IMC has chosen to coincentivize at the 25% level (aka, we put in $25 for every $100 Stakewise put in).
    • The IMC has significantly allowed Stakewise to take the lead here on how much should go in, which groups to incentivize etc. We are checking things make sense to us, but for the most part this is their game, and we’re here as helpful partners.
    • Both Stakewise SLC and RP IMC are cognizant of potential contagion issues if we rely on each other too much and there’s a big depeg or somethign, so there’s eyes on it. Being transparent, the risks are larger for Stakewise than RP (you can think about risks scaling with TVL in this pool vs TVL in the overall LST).
    • TL; DR: a small and extremely efficient pool from the point of view of RP incentives

Period 18 Report

  • Used Quest to incentivize Curve for the first time successfully
  • In this period there was a Gamma hack

Period 19 Budget

  • This can’t really show up on the budget, but we have been executing on Hidden Hand Balancer market incentives sub-optimally. We have been doing single-period incentives every 2 weeks – for Aura market, a period is 2 weeks, but for Balancer market it’s 1 week. We believe the impact is likely quite small as we have seen no evidence of people bouncing in and out on a weekly basis – it seems likely that people are essentially tracking our yield on longer timescales. Nonetheless, we’ll switch to properly spreading out the incentives moving forward and look to the data to see if we see changes.
  • We got a partner proposal to get us co-incentives on Base if we could increase our spend a bit (see screenshot below). The IMC is excited to make that happen. Base LP incentives for this pool will be tripling between the two contributions :muscle:.

Likely upcoming

  • We’ll probably move some incentives from Balancer rETH/WETH to Curve rETH/WETH. The latter now supports an oraclized stable-swap (like Balancer), so we can easily use this to diversify a bit. Need to figure out deets (amplification factor, desired split, incentive market…)
  • POL - we talked about doing this and… haven’t. We should.

Data – 1% price impact

Near the end of Period 17, we saw a single large step down in liquidity. Some of it recovered, but no clear explanation for it. Some of it may be a period of small rETH premium?