We propose 1,500,000 BSN tokens be allocated to bribe 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/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 both BSN and dETH on Uniswap v3 in a very efficient manner.
Confirm incentives allocation for Bunni pools
Create and pass Bunni governance proposal for a gauge Common
Determine Hiddenhand or Paladin for bribes market
Get incentives WL for preferred market
Structure
Money flow on Bunni works like this.
Pool is created
Gauge is approved
DAO acquires veLIT OR DAO bribes veLIT holders
veLIT holders direct emissions to desired pool
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
Emissions Rate
I think the DAO should start out as light as possible with bribes and slowly inch up. $1500/week was suggested here [Provisional Proposal] BSN Allocation for dETH Integration in DeFi I think the DAO could get away with 1/3 of this spending only $500/week. Once liquidity plateaus the rate could be increased until the desired liquidity for each pool is met.
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
Thanks for this very important proposal. I want share my thoughts and propose adjustment.
BSN/frxETH or BSN/FRAXBP pool and gauge on Bunni make big sense. There is already trading BSN history on Uni v3 and current state of Uni pool showing big demand of incentives for LPs. 100 days campaign with 750k BSN budget with slow start 500 $ (50k BSN) sounds good.
dETH/frxETH pool and gauge is more complicated question. There are 19 validators at the moment who are able to mint and withdrew dETH. Part of dETH holders signaling that they are dont want mint dETH and provide liquidity. They are happy protected stakers. The validator number 20 was staked yesterday and will be eligible to mint dETH on aprx 45 days. Currently 123 dETH minted and half of them already sitting on Curve dETH/frxETH pool. https://curve.fi/#/ethereum/pools/factory-v2-287/deposit Proposal to add Curve CRV gauge for dETH/frxETH already passed quorum and have 100% support from Convex and StakeDAO https://dao.curve.fi/vote/ownership/340 dETH/frxETH on Curve should be eligible for FRAX DAO support according to this FRAX proposal frxETH WETHR Gauges+Proposal - Gauge Proposals - Curve.fi Governance I am proposing Blockswap DAO focusing to build strong liquidity for dETH/frxETH on Curve first. Current Curve dETH/frxETH TVL is 170k USD and I believe with 100k BSN incentives per week (1000 $) pool will grow to apx 400k USD in short time. I am proposing set up Curve incentives campaing for 10 weeks with 1m BSN budget. I am proposing use Stake DAO | Votemarket for managing Curve-BSN incentives campaign.
Clearly LP funds on Bunni work much harder than they do on Curve. So this isnt really about helping LPs… Can you explain to me why Curve having 400k of liquidity is going to be more beneficial to Blockswap?
& btw not an argument against Curve liquidity… I just dont understand why in your mind something thats gonna be much less efficient for LPs must be the only choice until some arbitrary number is reached.
Curve ecosystem have big social layer. Building dETH/frxETH pool on Curve quickly open doors to Convex, Yearn, StakeDAO user base. dETH will be shown in a few DeFi apps in days after CRV incentives starts. SDT and CVX incentives for liquidity providers on top of CRV is reachable goal too. I am not against Bunni, my main idea when dETH supply are limited direct and indirect benefits to be represented on Curve are more.
I believe it will be great to make wide dETH represention in DeFi. I will be happy to see Bunni dETH/frxETH pool when lets say more than 500 dETH minted. But now early try run in different directions in same time.
Do you have the ear of large CRV/CVX whales? I am concerned this will make Blockswap a small fish in a big pond (Curve ecosystem). We have seen similar situations with projects like Moneta DAO who get a Curve gauge and then still end up using Bunni bc they can be a big fish in a small pond. Yes you are right Bunni doesnt have a convex layer yet (code is being written by at least one protocol) and Yearn doesnt have a vault for Bunni, yet. Bunni will have its 3rd bribe market soon enough.
I am advocating for the same thing but saying you are potentially wasting energy being inefficient.
Just to clarify though, your argument is to move forward with BSN/FRAX bc Bunni is more efficient. You would however prefer to trade dETH/frxETH LPs efficiently and returns as well as DEX users slippage for the advertising opportunities the Curve Ecosystem can offer?
I am lobbying dETH/frxETH in Curve ecosystem during last month and have positive feedback from veCRV voting power holders. With 400k USD pool TVL and 1000$ USD incentives continuously meet votes support it is not an issue at all. More than that there are possibilities to find 200-300k veCRV votes support without incentives for slow CRV incentives start.
I dont want to dig what is better Uni V3 (Bunni), Curve or lets say Balancer. It is another topic. I want repeat. dETH supply limited and spread the incentives for dETH liqudity in different places no sense. I am lobbying Curve because from my view spread Blockswap DAO incentives between different DEXes it is good adv. BSN/frxETH on Bunni and dETH/frxETH on Curve. Are you prefer keep eggs in one place?
Gotta move on unfortunately and get some more work done today. Clearly were at an impasse. Gonna let some more people comment; hopefully someone who is gonna LP. Ty for your feedback & I genuinely hope Blockswap can win some free Curve market share. That would be AWESOME for the narrative!
You cant argue a limited amount of LPs as a positive for using a less efficient market. You are gonna get 10x if not 100x the results on Bunni as you will on Curve. Great to hear you wanna diversify for security, that makes total sense. Blockswap need that if/when the DAO needs a Chainlink price feed. Might as well allocate a fraction of your proposal’s allocation then to Bunni since it will double your liquidity…
50/50 Balancer/Bunni for BSN
50/50 Curve/Bunni for dETH
We are talking about FIRST 10 weeks (dETH/frxETH) and 100 days (BSN/frxETH) campaign. It is just the beginning for Blockswap DAO. I am like the idea spread the incentives in future. I like the idea to set up Balancer pool for 80 BSN/20WETH like 80LIT/20WETH done. And I am FOR dETH liquidity on Bunni when dETH supply will grow. Lets wait for other Blockswap DAO members feedbacks and I hope we will be in sync during SECOND and all future BSN incentives campaigns.
Would it make sense to talk about BSN liquidity and dETH liquidity as separate temp checks/proposals?
There is already a provisional proposal for dETH and that could get actioned quick where BSN liquidity has no proposal and has a longer governance process ahead of it.
