| id | Title | Status | Author | Description | Discussions to | Created |
|---|---|---|---|---|---|---|
| TIP-41 | Extension of THALES token LP program | Vote Pending | padzank (@padzank) | Extend the program for 4 weeks, taper LP rewards and increase the bond program | https://discord.gg/rPpPcMXSeU | 2022-04-09 |
This TIP proposes to extend the LP staking and Bonds program for 4 weeks with decreased LP staking rewards and increased THALES/WETH Bonds capacity.
The 10-week LP incentive program in place since migration to Optimism is ending on Friday April 15. With latest LP incentives emissions being relatively high for the duration of the program, this TIP proposes to extend and taper LP rewards for the THALES/WETH G-UNI pool on Optimism to 30,000 THALES tokens weekly, reduction from 50,000 THALES weekly from the current program.
This TIP additionally proposes to extend the Olympus Pro THALES/WETH Bonds program with increased capacity to a 70,000 THALES distribution goal per week for the same period of 4 weeks. The goal is to slowly increase the protocol owned liquidity by incentivising THALES/WETH G-UNI LP token holders to transition from LP staking towards the Bonds program.
As of writing this TIP, exactly 1 month elapsed from the THALES token migration and the launch of liquidity incentives on Optimism. The time has come to further accelerate the liquidity transition from the old token on L1 to the new THALES token on L2. Extension of DODO rewards on L1 are ending March 4th and will effectively mark the end of liquidity support for the old THALES token on L1. This provides the most opportune time to act on introducing more incentives for providing liquidity on Optimism.
Introducing Olympus Pro infrastructure for THALES/WETH G-UNI LP tokens introduces clear benefits for community liquidity providers. Compared to classic LP staking incentives, LPs who bond their LP tokens in exchange for discounted THALES tokens will remove any impermanent loss risk that is present in the classic liquidity mining system. Benefits to the protocol are that, instead of exclusively only renting out liquidity, the protocol would be acquiring liquidity from bond purchasers. This system increases the safety of long-term liquidity that will be in the ownership of the protocol itself. With this introduction, THALES/WETH LPs using the G-UNI framework on Optimism will have additional choice of utilizing their LP tokens for THALES rewards, with both options coming with their own respective trade-offs.
With both Liquidity Mining and the Bond system using the same THALES/WETH G-UNI LP tokens, liquidity providers can provide liquidity first and then decide which program they wish to utilize with their existing LP tokens, without the friction of needing to hop liquidity around.
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This TIP entails the Thales Protocol DAO to decrease THALES rewards towards THALES/WETH G-UNI LP token stakers, from 50,000 to 30,000 THALES tokens weekly for 4 weeks starting from 15th of April.
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This TIP additionally entails the Thales Treasury DAO to facilitate the deployment of THALES/WETH bonds market on Olympus Pro seeded with 280,000 THALES tokens for the same period of 4 weeks with 14 day vesting for rewards.
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