TIP-16 - V2 Protocol Allocation


@lewi, @eqparenthesis


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.



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.


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.


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


Address: 0x460661bd4A5364A3ABCc9cfc4a8cE7038d05Ea22

Amount: 49,500,000 ESDS

Vesting schedule: None