Proposal Details
Proposal #166
Proposal title
Inferno 2 - Continuing Forge LP incentives with Revert Finance
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Proposal #166 description
Inferno 2 - Continuing Forge LP incentives with Revert Finance
Authors
Summary
Inferno 2 - a second round of a 12 week long incentive program on Forge, the community owned DEX of Evmos. The Forge team is requesting 3,000,000 EVMOS to fund this second initiative, which will run in parallel with the Steer incentive program. This proposal aims to continue the success and growth of Forge, which as processed over $20,000,000 in trading volume since Inferno began.
Goal
Create sustainable liquidity and volume on Forge but also raise awareness about DeFi on Cosmos with solidity-based applications.
Abstract
Motivation
The Evmos blockchain has the potential to become a unique environment for DeFi in the IBC ecosystem, but it has had its fair share of roadblocks that have slowed down and limited growth. By incentivizing staked assets (such as stEVMOS, stATOM, rETH) people will earn staking rewards while providing liquidity and participate in the incentive program; no DEX on Cosmos has done this yet which is a unique value proposition of Forge. On top of that highly concentrated pools can be created between the native and staked asset (such as stATOM/ATOM) with limited impermanent loss risks but lot of revenue potential.
Action plan and Pools
The full incentive program has a duration of 84 days - divided into 2 periods of 42 days. Before each period the incentive rewards will be liquid staked to stEVMOS and rolled into the 42 day program. The Stride DAO has committed to providing 250 STRD per day as external incentives for the first half of the program and will re-evaluate this commitment leading up to the second half!
We selected 6 pools in total and put them into two different incentive tiers. Our goal is to avoid fragmentation and get deep base liquidity on Evmos.
Tier 1 - 31,414 EVMOS total daily emission
- stEVMOS/stATOM
- stEVMOS/axlUSDC
- stEVMOS/axlRETH
- stEVMOS/STRD
Tier 2 - 4,300 EVMOS total daily emission
- stATOM/ATOM
- axlRETH/axlWETH
Vesting
For this round of incentives, we are proposing an increase in the vesting period to 7 days across all pools.
The time-vesting uniswap staker is afork of the Uniswap v3 staker that adds a linear vesting period for positions to receive the full amounts of the accrued rewards. Linear vesing of rewards is intended to prevent ultra-concentrated liquidity from gaming the incentives and extract most of the rewards. You can read more about it on this post.
Rewards claiming
Vesting is calculated when you unstake the position. So, when you unstake the position, the contract checks if the liquidity was active for longer than the vesting period. If it is, you get all rewards for the amount of active liquidity you provided in the time period. if it's not it gives you the ratio of timespent/vesting period*(rewards received if there was no vesting period). The unallocated tokens are then refunded to the deployer once the incentive contract expires. These refunded tokens will be rolled into the next period or extend the length of the program.
Adjustments
If the liquidity of a pool does not match our expectation we might make adjustments on the allocation per pool or the vesting period as we learn during this program. Each change will be discussed on Forge's social channel and communicated upfront.
Multisig 3/5
All the funds will eventually flow to the liquidity providers.
- LPX | DAO
- CtrlAltApe | OrbitalApes
- John | Stride
- Rok | Qubelabs
- Luis | Interbloc
Safe Deployment Address: evmos:0xb75ce906a270F7680Faf1A2F6D70F4f28061B87a
Highlighting Engaged Community Members
Special thanks for input & feedback on this program from Luis (Interbloc), and _Nick (active community member)