KIP-49: One month extension of incentivized Arrakis (UNI-V3) LP pool

Author
SteveNX
StatusImplemented
Created2022-12-09

Summary

This KIP proposes a one-month continuation of liquidity mining on Arrakis (UNI-V3) throughout the planned velodrome liquidity trial so that a more accurate comparison can be made between the two platforms.

Abstract

Initial liquidity for KWENTA was established on Uniswap V3 (Optimism) through a one-month incentivized KWENTA/ETH Arrakis Finance liquidity pool. The pool was set to run between November 19 and December 18, 2022. A total of 783.43 KWENTA (0.25% of the initial supply) was allocated to incentivize the pool, being made available as liquid KWENTA. 

Following approval of KIP-46, liquidity mining for KWENTA is due to be trialled on Velodrome Finance. This proposal would allow for liquidity mining to continue on Arrakis throughout the Velodrome trial, incentivized with a total of 195.8575 liquid KWENTA.

Motivation

Dividing KWENTA incentives across Arrakis and Velodrome for a one month trial will:

  • Allow for a comparison between the two platforms to be made
  • Ensure that comparisons are like-for-like (i.e. that both trials occur in the same market conditions and at the same point in the KWENTA token's lifecycle post-launch) 
  • Help to establish continuity of liquidity on Uniswap V3 (Optimism), which is important in the early stages of a new token
  • Provide two marketplaces for KWENTA to be traded, potentially supporting visibility of the platform and increasing market efficiency

Specification

Continue the existing Arrakis LP program, but lower the rewards from 783.43 liquid KWENTA to 195.8575 liquid KWENTA for the second month. Direct the other 391.71625 liquid KWENTA to the Velodrome trial as per KIP-46. Undertake a review at the end of this trial month to compare the results of both platforms. 

Copyright and related rights waived via CC0.