[Temperature Check] Allocate BSN incentives to attract and bootstrap liquidity on Bunni for a BSN/frxETH pool

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[Temperature Check] Allocate BSN incentives to attract and bootstrap liquidity on Bunni for a BSN/frxETH pool.

Introduction

This Temperature Check will outline a method to create a pool on bunni.pro for a BSN/frxETH pair as well as start bribing pools until a reasonable level is reached. This is an update to the governance talk here Allocate BSN Incentives to seed initial liquidity on Bunni for BSN/ETH Pair and here Tally | Blockswap DAO Proposal per the request made on the community call here Discord

We propose 1,500,000 BSN tokens be allocated to bribe veLIT holders over 20 epochs (or 140 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/frxETH pair.

Motivation

Bunni.pro offers a solution for attracting liquidity for both BSN & dETH tokens that is efficient for both DAOs and LPs. They also are planning both cross chain gauges and collateralzation partnerships for their LP tokens opening the door for future growth. By using the frxETH pair and being part of Frax’s program, we can further the DAOs relationship with Frax. Bunni also has a relationship with Fran and Frax is an active briber. We could ask for a co-incentivized pool from Frax while helping Frax on their goal to push frxETH adoption.

Objectives

  • Take steps toward creating proper liquidity for BSN on Uniswap v3 in a very efficient manner.
  • Create and pass Bunni governance proposal for a gauge Commonwealth
  • Determine Hiddenhand or Paladin for bribes market
  • Get incentives WL for preferred market

Structure

Money flow on Bunni works like this.

  1. Pool is created
  2. Gauge is approved
  3. DAO acquires veLIT OR DAO bribes veLIT holders
  4. veLIT holders direct emissions to desired pool
  5. LPs are incentivized to collect oLIT rewards so they deposit into pool

It is probably more effective short term to just rent veLIT votes. Last time data was reported, it was a net positive move to bribe vs incentivize directly to your pool. x.com

More Details

While BSN does not have liquidity, it is becoming more common for protocols to use placeholders or credits for future tokens. The Bunni community has shown signs of being open to this concept so a low liquidity token with a new pool on Bunni will most likely be accepted. Just recently monerium was able to bootstrap mainnet liquidity from practically zero with very little efforts given Common

Webapp - https://bunni.pro/

Curve vs Bunni - https://dune.com/bored_genius/bunni

DefiLlama

DefiLlama

Summary

  • The DAO allocates 1,500,000 BSN in incentives for a BSN/frxETH pool on Bunni.
  • The emissions program runs for 140 days after implantation. Afterward, a DAO vote would need to be approved to extend the partnership.

Conclusion

This is a Temperature Check to gauge community interest in allocating BSN incentives for bootstrapping liquidity on Mainnet. All feedback is welcome.

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