This proposal aims to outline a plan for allocating a competitive amount of BSN emissions to Bunni.pro in order to seed and grow BSN/ETH liquidity. Bunni.pro is a liquidity engine for uniswap V3 where projects incentivize veLIT holders to vote on their gauges and direct native oLIT emissions to their LP pair. Although Bunni is a relatively new platform, one can think of it as a layer that exists on top of uniswap v3, as the liquidity deposited on the platform is really just deposited on univ3 on the backend. The benefit to this is since univ3 incorporates concentrated liquidity, the deposited capital would be very efficient.
As mentioned, Bunni is relatively new, and there is not much competition to bribe veLIT holders. Currently, $1500 in weekly incentives will make blockswap competitive and allow the protocol to attract votes from veLIT holders making BSN/ETH gauge a lucrative option to provide liquidity for. Since there is no liquid market for BSN currently, the DAO would have to seed its liquidity on bunni and choose a range in which to provide liquidity for. Luckily, there has been an OTC market that has developed in the discord over the past few months and judging by the spread, it seems like bids are around $.008/BSN and asks are around $.015/BSN. If we were to take the current market rate of BSN to be around $.010/BSN, then the DAO would have to bribe about 150,000 BSN tokens to veLIT holders every epoch (each epoch is 10 days), which would match the competitive rate of $1500/epoch. I propose we set aside 1,500,000 BSN tokens and incentivize veLIT holders over 10 epochs (or 100 days). At the end of this trial period, pending success of attracting sufficient liquidity, the DAO can choose to extend the incentives program to foster healthy liquidity for the BSN/ETH pair.
Liqudity is key for any project and thus i support the intial proposal. With the liqudity being concentrated via Univ3 and it being battle tested sounds like a great plan. Bridging the Bunni / Velit model to Blockswap also brings more sets of eyes and exposure to the project.
As a user of Bunni and owner of $veLIT I really love this idea.
Bunni is a good way to bootstrap liquidity with the help of a bribe market like Quest from the Paladin team of HiddenHand.
Gm! Dakotah here from the Growth Unit of Bunni. Its nice seeing this proposal. Here if yall have any questions. 2 things did stick out that are probably worth mentioning.
Epochs are every 7 days but new gauge votes lock for 10 days. What this creates is an on/off cycle for bribes. No need to bribe on the off week and you could probably bribe less than $1500/period and still see results tbh.
If the idea of bootstrapping a range sounds like a lot I suggest positioning the gauge pricing in a way where it goes live at the bottom end of the range. This should allow for much less than a 50/50 pool. Also, there is no minimum to start a pool.
Hello everyone, I’m Starny from Paladin and I would like to introduce you to an alternative to Hidden Hand (HH): Quest
(I can’t provide link on this discussion)
Quest is a protocol within the Paladin ecosystem designed for veTokens, it means that Quest is also around veLIT .
Quest offers a unique approach to acquire gauge votes for Bunni (veLIT) and any other compatible veToken protocol and their wrappers !
Most incentives platforms can only allow buyers to offer an arbitrary amount of rewards to influence voters. Buyers can easily overpay this way, and voters are also always at the risk of getting diluted by other voters. Instead, Quest allows buyers to fix the rate of rewards per vote. This way, a Quest creator can target a specific amount of votes while voters have the benefit of knowing exactly how much rewards they could earn before joining a Quest.
We’re already working with great partners such as : Lido, Synthetix, Liquity, ThresholdNetwork and many others DeFi projects
You can learn more about Quest in our docs
Please feel free to ask me any questions you may have, I will be happy to answer questions about how Quest can benefits everyone
