UIP-4
title: Re-enable LP rewards
author: nicobilinkis.eth
status: Phase 1
created: 2022-31-3
Simple Summary
Re enable the previously existing rewards for the liquidity pools for UBI-ETH and UBI-DAI.
Motivation
During a whole year since POH and UBI’s launch, there were rewards for those who staked and provided liquidity for the UBI-DAI and UBI-ETH pools on Uniswap.
This helped bring in a lot of money into the pools, funding the rewards with new UBI emission. I believe that it’s key to enable this rewards again, as that’ll help in keeping the UBI price more stable.
Implementation
Not sure yet, will do some research for phase 2.
5 Likes
As discussed in the chat, I believe it’s a good idea to re-start the liquidity program once we have an idea of which chain/L2 we expect the UBIs to be dripped to, to incentivize liquidity to be built there.
Also, it might be a good idea to do it alongside an event that creates more utility to $UBI, for example the launch of UBIv2, the marketplace, Arretverse, etc.
I don’t think adding $UBI rewards now in mainnet will have a noticeable effect on LPs, and it would also increase the circulating supply faster. (i.e. LPs might choose to dump the rewards if they are mining it while it doesn’t have much utility)
7 Likes
I think you have a good point @0x6687c671980e65ebd722b9146fc61e2471558dd6_Ethereum that this could be part of a larger strategy that launches ubi v2.
We could still could commit a part of our budget (around 4M UBI) to be allocated for this purpose doing this UIP.
Regarding implementation @nicobilinkis.eth … I think we can use some of the 4M UBI currently under custody by the PoH Governor that are allocated to a new version of the liquidity farming contracts. Ideally we would update these contracts to use Uniswap v3
2 Likes
hey there! could I DM you on a proposal for UniV3 in this regard?
hey @ablank!
Sorry, I just got this.
Send me a DM on telegram (t.me/nicobilinkis)