Summary
We propose extending the incentives for the GROW/ETH pool on Base for an additional 20 weeks to stabilize the pool, benefiting ValleyDAO token holders that provide liquidity on Base. A total of up to 15,000 GROW over 20 weeks (an average of 750 GROW per week) is proposed for this initiative, sourced from the Ecosystem fund.
Overview
Background:
Following the approval of VIP-8, ValleyDAO launched a GROW/ETH pool on Aerodrome Finance, the largest DEX on Base. We supported the pool’s liquidity by adding GROW tokens for yield farming incentives. As we near the end of the VIP-8 period, this proposal outlines the results and requests additional support of the pool.
Results from VIP-8:
- Incentives Provided: We allocated 6,000 GROW as incentives over the past 12 weeks, worth $7,800 USD at the current price of $1.3 per GROW.
- Rewards Collected: We collected 5,200 AERO tokens as part of Aerodrome’s incentive program, valued at $5,720 USD ($1.1 per AERO).
- Initial Pool Input: We started with 11.98 ETH and 34,038.45 GROW.
- Current Pool Status: The pool now holds 42.01 ETH and 129,599.72 GROW, reflecting a 3.5x growth in the size of the pool.
Since VIP-8, ValleyDAO invested 6000 GROW to increase the size of the Base pool over three-fold. This reduced price volatility, making transactions on Base more stable. Additionally, GROW holders were able to earn rewards, boosting engagement and participation with our token.
Ask
Based on the results from VIP-8, we propose to continue incentivising the Aerodrome pool. This will entail:
- Allocating up to 15,000 GROW over the next 20 weeks (at an average rate of 750 GROW/week). These will be sourced from our ValleyDAO Ecosystem Fund.
- Reinvesting the 5,200 AERO tokens earned from VIP-8 to further incentivize liquidity provision on Aerodrome Finance.
Conclusion
This proposal aims to maintain the GROW/ETH pool on Base, ensuring liquidity for all participants who want to swap GROW on Base chain. After this 20-week period, we will review the pool’s performance and submit a new proposal based on our findings.
Proposal Ask:
- Allocate up to 15,000 GROW over the next 20 weeks (averaging 750 GROW per week).
- Reinvest the 5,200 AERO tokens received as rewards from Aerodrome to further incentivize the pool.
By extending these incentives, we aim to maintain and enhance the pool’s growth and liquidity, benefiting stakeholders in the ValleyDAO ecosystem.
- Agree
- Disagree (comment is encouraged)
- Needs Revision (comment is mandatory)