- This is late - I should’ve posted almost a week ago
- This is not going to have the spreadsheet and some of the details - I’m traveling on holiday, so trying to limit the time I steal for RP
- Original plan was 100 RPL per bribe round to rETH/RPL
- Kept to this
- Original plan was 3150 per bribe round to rETH/WETH
- Changed course. The big thing we saw was that the premium continued to grow. 11/24 was the first day over 2%, and it touched 3% (see picture below)! The larger premium put us in an area of thinner liquidity, so (ironically) it was possible that spending more on liquidity gave us less liquidity (as it creates upward pressure on the peg when we incentivize LPing). Instead of 3150, we did 2925 and 2630 respectively.
Ok - so did that help?
As of 12/7, it had. As of literally sometime today, only a little. Someone put in a huge rETH buy, the premium spiked to 2.7% (not yet in the chart below cuz that’s one update per day) and so the high premium translates to a thin liquidity region. That said - we’re actually doing similarly to 11/23 in 1% price impact points (only looked on mainnet, but that dominates) which means… folks must be accepting less APR?
Anyhow - I think the general idea is functioning, and I propose continuing down the road a bit for now.
My suggested budget:
- 100 RPL for rETH/RPL per bribe round
- Decrease ~7.5% each bribe round for now on rETH/WETH
- 2430 next, 2250 the one after that
- I’m going to bring this up for a quick discussion and poll in the “#rETH Liquidity Incentives” thread on discord
- Continue to provide ~10% coincentive matching to jumpstart folks that make rETH/theirtoken pools