RBW/wETH LP Staking Proposal

Draft Proposals
1

Abstract

With this proposal we intend to setup a reward program for players providing long-term liquidity to the RBW/wETH trading pair on Balancer (Polygon).

Motivation

It’s vital to our economic growth that we have enough liquidity to allow players to enter and exit with minimal slippage. Increasing liquidity reduces slippage and decreases the barrier to trading. While this can be a double edged sword we intend to leverage a locking mechanism + leaderboard to align incentives with those willing to take on higher risk of impermanent loss.

Details

RBW/wETH LP Program:

On April 28th, 2022 we will remove the RBW/USDC pool and create a new pool RBW/wETH on Balancer.

  1. We will initially seed this pool with $10M (RBW/wETH) and plan to keep this liquidity as a baseline for the pool. Please note: We will not stake these treasury owned LP tokens.
  2. We will then open up LP staking on https://cryptounicorns.vault.inc/

LP staking will work similarly to RBW staking. Players will have the option of a 1-12 month lockup. The longer you are willing to time lock the higher the APY. Our target is $20M in liquidity (including the $10M in baseline) which will yield ~ 2%-80% APY depending on the length of time staked.

Initially these APYs will be as high as 800% to incentivize early LPs and to help mitigate the risk of impermanent loss. If you are unfamiliar with impermanent loss please review this article. It is extremely important to grasp this concept prior to LP’ing!!

In addition, to the base RBW rewards above we will launch an LP staking leaderboard!

The structure is simple for the first year. Each month we will take a snapshot. The monthly rewards are as follows:

LP UNIM_RBW Rewards

The Year 1 staking leaderboard will conclude with a final snapshot on 4/28/2023. The rewards are as follows:

LP Yearly Rewards
LP Yearly Rewards827×409 18.9 KB

Proposal Cost

There is no direct cost to the CU DAO as Vault, Inc. already has this functionality in place. Please note: We will submit a separate Ecosystem Fund Grant proposal in the future for the Vault, Inc team given their incredible contributions to our ecosystem.

Conclusion

We ask that the community vote in support of this proposal when we activate the vote on April 20th, 2022. This will allow us to be set up and ready to go on April 28th!

116 Likes
2

Just in case of rapid RBW price growth I enjoy the RBW/wETH LP pair more than RBW/USDC, for sure. Another leaderboard, another one baits the dust, and it’s me, trying to particiate in each competition, no matter what is it: FRP, UNIM Hodler, w/e… I’m on the hook again, definitely :slight_smile:

UPD: Maybe you could consider something stimulating to stake for a longer period, as it was with the Founders Reward Program, if you stake for 12 months, you get extra yummy-yummy things. This could motivate our community to provide liquidity for more time.

26 Likes
3

all for it, great way to get more LP for a healthy ecosystem of the game.

5 Likes
4

it will rocket! amazing

3 Likes
5

This is understandable. for all the stakers and the LP providers.

Looking forward to provide a locked liquidity for CU.

4 Likes
6

Great motivation. I like. Perhaps in the future we will be able to come to the Dual yield strategy? Maybe MATIC+wETH+RBW = UNIM + RBW?

5 Likes
7

i like this better than the rbw/usdc pairing.

2 Likes
8

каждый раз удивляюсь какие вы ребята крутые! :metal: :+1:

3 Likes
9

not a very interesting idea. you plan to reward only from tier 1 to 10. and nothing else. but to get into the top 10 tier, you need to deposit a lot of funds into the liquidity pool. this is sad and not interesting for the average player of your game

8 Likes
10

Support this! Just one thing: maybe choose 80:20 to mitigate impermanent loss more or less.

5 Likes
11

这个方案很好 有了新的lp方案这样流动性就更加好了 利好RBW

4 Likes
12

The rewards that will be given are very interesting.

3 Likes
13

Supporting this move. Juicy APY and items are great incentives to attract LPs.

4 Likes
14

非常优秀的方案 以后流动性好了 会有更多资金进来这样rbw市值才会越来越好

3 Likes
15

Nothing to object! great to see wETH being the pair! As a non US citizen this sits way better with me :slight_smile:

5 Likes
16

You definitely forgot about a HUUUUGE APR on this kind of DeFi.
But yeah, 800% APY will not be a deal for a long time with our investors.

5 Likes
17

I support this structure, I think its a great idea.

My 1 question/concern would be that there 28 million+ RBW staked earning very juicy staking rewards. I can’t imagine the float of RBW is much greater than 5 million tokens or so at the moment.

I know this is a dynamic equation in that less LPs = higher rewards, but with staking yields so high it might be hard to reach that $20mil target… esp. with the IL risk. I am sure the team ran some simulations to arrive at the right number, but my initial instinct tells me the rewards for staked LPers might need to be higher.

6 Likes
18

Wouldn’t there be a risk for a massive LP dip at the 1 year mark? Knowing this community I think a lot of us would lock up for 1yr without hesitation, but after that there’s not a whole lot of incentive to keep providing liquidity. I mean, the APY will have normalized and the biggest rewards was just handed out. A lot of Liquidity will be pulled on the 29th of april 2023. Wouldn’t a slow fizzling out of the rewards value be better? Becoming less and less interesting as the months pass, making sure any folks who decide to hop of don’t all do so at the same time, since everyone will have different considerations of what is considered worth it to them. A larger reward handed out every 3 months for example instead of just at the year end.

8 Likes
19

I think you need to re-read the tables posted. it’s the top 100 and 2000 providers that will be rewarded. And LP isn’t for the average player either, it’s an investment. I think the point is to incentivize big investors to provide a stable path for your average player to extract their earnings.

6 Likes
20

Hey. Taking into consideration that people will keep staking within some period of time for different periods of time, it looks kinda decent. Maybe some improvements still can be done.
I.e. imagine someone staked %n for 3 months on the day 1 of opening the LP, another on staked %n for 6 months after a week, etc.

5 Likes