Authors
Summary
Alongside the deployment of the V2 code, this proposal looks to establish liquidity mining incentives and also refresh the treasury. The liquidity program will cover both tokens, a Curve pool for the stable instrument and Uniswap for the share token.
Purpose
Liquidity
Unlike V1, V2 does not directly require liquidity to stay stable. However we do want to bootstrap a small amount of liquidity as a showcase to potential partners that the new ESD stablecoin is live and safe under real-world conditions. Once ESD is more widely used in protocols, these incentives should no longer be necessary. To bridge this gap, we propose allocation 33,000,000 ESDS as a linear drip over the next year to bootstrap the ESD Curve market.
Additionally, we propose allocating 16,500,000 ESDS to bootstrap liquidity to the ESDS-ESD Uniswap market so that there is at least a minimal amount of day one liquidity to ease volatility during the migration process. This should also similarly be a temporary measure, and should therefore have a similar drip schedule.
Treasury
Our community treasury has been incredibly successful in aligning ecosystem contributors. Since we no longer have an expansion tax, we’d like to re-up the treasury as part of the V2 launch so that we can continue funding additional contributions.
We’d like to propose allocating 49,500,000 ESDS to the treasury at this time as a lump sum, with the intention of allocating follow up grants to the treasury as needed via on-chain governance in the future.
Impact on Tokenomics
Below represents effects of this proposal + the protocol partnerships incentives w/ DeFi Pulse on the total supply of ESD tokens at V2 launch. This proposal concerns the yellow portion of the pie graph.
Note: the proposal for the red segment has passed.
Specifics
Incentivizer [Curve ESD]
Address: TBD at deployment
Amount: 33,000,000 ESDS
Drip schedule: Linearly over one year from deployment, modifiable through on-chain governance
Incentivizer [Uniswap ESD-ESDS]
Address: TBD at deployment
Amount: 16,500,000 ESDS
Drip schedule: Linearly over one year from deployment, modifiable through on-chain governance
Treasury
Address: 0x460661bd4A5364A3ABCc9cfc4a8cE7038d05Ea22
Amount: 49,500,000 ESDS
Vesting schedule: None