STP-14: Incentivize USDC LP on Base Andromeda
| Author | |
|---|---|
| Status | Draft |
| Implementor | TBD |
| Release | TBD |
| Created | 2024-01-29 |
Simple Summary
This STP allocates SNX to kick start liquidity provision on Base Andromeda.
Abstract
Allocate 35k SNX over 8 weeks to incentivize USDC deposits on Base Andromdeda.
Motivation
Base Andromeda is ready scale up, and in order to reach its potential requires a significant increase in USDC liquidity.
Specification
Overview
This STP allocates 35k SNX over 8 weeks to incentivize USDC deposits. A rewardsDistributor contract will be required to be deployed and registered, and will be defined by the appropriate SCCP.
Rationale
Incentivizing the Spartan Council pool is expected to attract more USDC, which in turn allows perp Open Interest caps to be increased, attracting traders and kickstarting the organic fee yield. Weeks 3-8 at current SNX price would yield 15% APR on ~$5.5m USDC.
Financial Specification
35k SNX will be allocated to this pool for a trial of 8 weeks. During the trial period this figure may be adjusted or extended by the treasury council.
| Interval | Reward | LP for 15% APR, $SNX @ $3.20 |
|---|---|---|
| Week 1 | 2k SNX/week | $ 2,218,666.67 |
| Week 2 | 3k SNX/week | $ 3,328,000.00 |
| Weeks 3-8 | 5k SNX/week | $ 5,546,666.67 |
| Total | 35k SNX |
The TC will send 35k SNX to the deployed and registered rewardsDistributor contract.
Copyright
Copyright and related rights waived via CC0.