Alright, incorporating some feedback from @eqs and @SethVdL here, broke the retroactive airdrop and liquidity mining incentives into two SLURPs, broke Priority Pool airdrop and reSDL Lock and Mint airdrop up, and tied the amount of the Priority Pool airdrop to the amount of LINK staked through the Priority Pool.
Havent forgotten you @Fox, will respond tomorrow!
SLURP-10a | Retroactive SDL and OP Airdrops for Priority Pool Depositors and reSDL Minters
Abstract
Presuming the succesful acceptance and ratification of SLURP-9, SLURP-11 for the deployment of the Priority Pool, and a forthcoming Optimism Growth Experiment Grant conferring OP tokens, we propose retroactive SDL airdrops for reSDL lockers and Priority Pool stakers on all networks, and retroactive OP airdrops for reSDL lockers and Priority Pool stakers on Optimism.
Rationale
The launch of Chainlink Staking v0.2, the stake.link Priority Pool, and the launch of reSDL and stake.link Tokenomics 2.0 presents a rare moment of fortuitous confluence. By accruing a massive stake of LINK, and thereby generating a larger supply of stLINK, it will be much easier to broaden the reach of the stake.link protocol and seek additional DeFi interactions.
The future of interacting with Ethereum is Layer 2 based, and gas costs on Ethereum Mainnet will likely only grow as time goes on. The deployment of stake.link to Optimism (as proposed by SLURP-9) and the incentivization of users to migrate their interactions with stake.link as a protocol to Optimism (and in the future other Layer 2s) enables increased interaction with the protocol, and opens the protocol up to Layer 2 native users.
Specification
Note
There are multiple dependencies for the entirety of this SLURP to be enacted, including additional SLURPs, grant proposals, and technical deployments. At this time, there are technical blockers around the bridging of LINK to Optimism by leveraging CCIP.
The following sequence is proposed:
- Dependent upon SLURP-11, and after inaugural launch phase of Chainlink Staking v0.2: Issue retroactive SDL airdrop to eligible Priority Pool LINK stakers and reSDL Lock and Minters
- Dependent upon SLURP-9, SLURP-11, deployment of stake.link to Optimism, Optimism Growth Experiment Grant, and after inaugural launch phase of Chainlink Staking v0.2: issue retroactive OP airdrop to eligible Priority Pool LINK stakers and reSDL Lock and Minters on Optimism.
Priority Pool LINK Staking and reSDL Locking and Minting Incentives
We propose a substantial airdrop of both SDL tokens and OP tokens to users staking their LINK in the Priority Pool and locking their SDL to mint their reSDL NFTs. The precise eligibility calculations for the retroactive SDL and OP airdrops will be shared at a later date, but the general structure will reward individuals who:
- Stake LINK via the Priority Pool (more LINK, more airdrop)
- Lock SDL into reSDL NFTs (more SDL and longer lock, more airdrop)
It is proposed that up to 2,000,000 SDL be retroactively awarded, with up to 1,000,000 SDL directed to Priority Pool LINK stakers based on their staked amount, 200,000 SDL to be distributed amongst the top 5 stakers and randomly to other Priority Pool stakers using Chainlink VRF, and 800,000 SDL directed to reSDL Lock and Minters, irrespective of network.
It is proposed that 75,000 OP be retroactively awarded to stake.link users on Optimism, with 50,000 OP directed to Priority Pool LINK stakers and 25,000 OP directed to reSDL Lock and Minters.
Note: calculations for the airdrop will be based on LINK that is actually ultimately staked - not simply queued in the Priority Pool.
Priority Pool SDL and OP Incentives Specification
Up to 1,000,000 SDL to be distributed to Priority Pool stakers based on their staked LINK amount, irrespective of network. 0.2 SDL will be distributed for every LINK staked, up to 5,000,000 LINK. Precise calculations on how per-address airdrop amounts are calculated will be shared after eligibility closes in an effort to prevent manipulation.
For the top Priority Pool stakers:
- 40,000 SDL
- 30,000 SDL
- 20,000 SDL
- 15,000 SDL
- 15,000 SDL
To be randomly distributed to Priority Pool stakers using Chainlink VRF:
2,500 each to 32 individuals who have staked in excess of 10 LINK.
Presuming receipt of 75,000 OP tokens from a forthcoming Optimism Growth Experiment Grant, 50,000 OP tokens will be distributed to users staking their LINK through the Priority Pool on Optimism. Should the amount differ, a similar ratio will be preserved.
reSDL Lock and Minters SDL Incentives
800,000 SDL will be distributed to reSDL Lock and Minters based on the amount of reSDL minted (amount of initial SDL balance and lock duration), irrespective of network.
Presuming receipt of 75,000 OP tokens from a forthcoming Optimism Growth Experiment Grant, 25,000 OP tokens will be distributed to users locking SDL and minting reSDL on Optimism.
Copyright
Copyright and related rights waived via CC0.
SLURP-10b | Mainnet Liquidity Mining Incentives and Optimism Grants and Liquidity Mining Incentives
Abstract
Presuming the successful acceptance and ratification of SLURP-9, SLURP-11 for the deployment of the Priority Pool, and a forthcoming Optimism Growth Experiment Grant conferring OP tokens, we propose modifications to the current liquidity mining incentives on Ethereum Mainnet, with a shift to direct a substantial portion of the current SDL rewards to incentivize the creation and growth of liquidity pools on Optimism based DEX Velodrome.
Additionally, we propose the deprecation of liquidity mining incentives for ixETH, and propose directing SDL and a portion of the possible OP token grant as incentives towards incentivizing an ETH/LINK pool on Velodrome, which would connect the proposed SDL/ETH and wstLINK/LINK pools on Velodrome to the rest of the liquidity on Velodrome.
We also propose the cessation of SDL incentives directed to the SushiSwap liquidity pool, and propose directing future incentives to a to-be-established Uniswap v2 liquidity pool.
Rationale
The future of interacting with Ethereum is Layer 2 based, and gas costs on Ethereum Mainnet will likely only grow as time goes on. The deployment of stake.link to Optimism (as proposed by SLURP-9) and the incentivization of users to migrate their interactions with stake.link as a protocol to Optimism (and in the future other Layer 2s) enables increased interaction with the protocol, and opens the protocol up to Layer 2 native users. Additionally, moving a substantial portion of the existing liquidity to a Velodrome will allow for lower gas fees for trading, and may lead to higher trading volume, benefitting LPers.
By directing a portion of the current incentive structure to incentives to veVELO holders we unlock a possible flywheel where LPers receive VELO tokens, lock them, and vote for increased incentives for these same pools. Velodrome indicates that for every dollar spent on incentives for an individual liquidity pool, $3 in VELO emissions are directed to LPers for that pool.
Our proposed pools are: wstLINK/LINK, SDL/ETH, and ETH/LINK. Additionally, we propose the deprecation of liquidity mining rewards to the ixETH/ETH pool.
Motivation
Establishing deep liquidity pools on Optimism provides new users with access to the fundamental stake.link protocol tokens, reducing the friction for them to begin to interact with the protocol. We believe that focusing development efforts and incentives here will represent a substantial growth opportunity for stake.link as a whole.
With respect to the existing liquidity pools and incentive structures on Ethereum Mainnet, the growth and fee generation opportunities for ixETH are limited in comparison to the stake.link deployment to Optimism. Liquidity Mining emissions to the Curve stLINK/LINK pool will continue, at a reduced rate.
Liquidity Mining incentives for the SDL/LINK pool will be directed to a yet-to-be established Uniswap v2 SDL/LINK pool. While the SushiSwap team has been attentive and helpful, several issues have arisen during the period of time the SDL/LINK pool has been hosted there. Routing to DEX aggregators has never been established, and we’ve attempted to address the issue of only being able to trade SDL against LINK twice, once to good effect. A simple Uniswap v2 pool will allow current LPers to enjoy the same set and forget liquidity provision, and they’ll be able to earn and claim their SDL rewards on mainnet with (hopefully) increased trading volume.
Specification
Note
There are multiple dependencies for the entirety of this SLURP to be enacted, including additional SLURPs, grant proposals, and technical deployments. At this time, there are technical blockers around the bridging of LINK to Optimism by leveraging CCIP. As such, in lieu of an SDL/LINK pool’s deployment on Velodrome, it is proposed that an SDL/ETH pool be established and bribes directed towards this pool on Velodrome. This will enable prospective stake.link users to acquire the fundamental protocol token for stake.link in advance of a full deployment.
Upon remediation of the aforementioned technical blockers, an ETH/LINK pool and wstLINK/LINK pool will be created using the newly CCIP-enabled LINK token. The ETH/LINK pair will serve as a public good, enabling users to readily acquire both SDL and wstLINK on Velodrome.
The following sequence is proposed:
- Allow ixETH/ETH Curve liquidity mining rewards to run out.
- The migration of liquidity mining incentives for the SDL/LINK SushiSwap pool to a to-be-established SDL/LINK Uniswap v2 pool. This allows for the same low friction, set-and-forget liquidity provision and remediates the issues experienced with the current SushiSwap pool including inconsistently effective routing, enabling users to exchange SDL with tokens other than LINK. Until such a time as LINK is able to be freely bridged to Optimism using CCIP, the current amounts of SDL LM incentives will be directed to the new SDL/LINK Uniswap Pool.
- Dependent upon the SDL token’s CCIP integration: the establishment of SDL incentives for the to-be-established SDL/ETH liquidity pool on Velodrome.
- Dependent upon the remediation of technical blockers around bridging the LINK token using CCIP: reduction of future liquidity mining rewards to the SDL/LINK Uniswap pool and the stLINK/LINK Curve pool. Begin directing SDL incentives to the to-be-established ETH/LINK and wstLINK/LINK Velodrome pools.
The following current liquidity and target APR values are calculated using the current liquidity amounts and SDL price from 09/07/2023.
Duration of Incentives
All incentives are to be run for a period of 12 weeks, then publicly reassessed via talk.stake.link. Should it be decided major changes are required (e.g. new pairs, or new DEXes), or should it be proposed to substantially increase any amounts, a new SLURP will be required.
Ethereum Mainnet Incentives, Current and Proposed
| SDL/LINK Sushi | stLINK/LINK Curve | ixETH/ETH Curve | SDL/LINK Uniswap | |
|---|---|---|---|---|
| Current Liquidity ($) | 750,000 | 1,125,000 | 250,000 | |
| Current 1 Day SDL Emissions (tkn) | 2520 | 1240 | 825 | 0 |
| Proposed Target Liquidity ($) | 0 | 500,000 | N/A | 330,000 |
| Proposed Target SDL APR (%) | 0 | 10 | 0 | 15 |
| Proposed 1 Day SDL Emissions (tkn) | 0 | 978.47 | 0 | 968.69 |
Optimism Grants and Velodrome Liquidity Mining Incentives
In a forthcoming Optimism Growth Experiments proposal, we are requesting 150,000 OP tokens to incentivize users to bridge to Optimism and engage with stake.link there. 50% of these tokens are being reserved for incentives to veVELO lockers to request VELO emissions to our proposed liquidity pools. We additionally propose directing the following SDL as incentives to veVELO lockers.
| SDL/ETH | wstLINK/LINK | ETH/LINK | |
|---|---|---|---|
| Target Liquidity ($) | 1,000,000 | 1,000,000 | 2,000,000 |
| Target SDL APR (%) | 15 | 10 | 5 |
| 1 Day SDL Emissions (tkn) | 2,935.42 | 1,956.95 | 1,956.95 |
| 1 Day OP Emissions (tkn) | 130 | 90 | 190 |
In summary, this represents a total increase of daily SDL spend from the current amount of approximately 4,600 SDL per day to approximately 8,800 SDL.
Copyright
Copyright and related rights waived via CC0.