SDIP#11: Curve v2 liquidity pair migration

Summary

This proposal aims to seek the community’s feedback on migrating the liquidity from the SDT-ETH Sushiswap and Uniswap LP pair to a newly created SDT-ETH pool on Curve v2.

Motivation

A migration to Curve v2 LP will provide some benefits to both Stake DAO protocol and SDT traders, allowing for lower slippage, a more competitive liquidity distribution, potential new income streams and optimization of weekly inflation’s allocation.

Specification

At the moment of writing, Stake DAO current LP pool on Sushiswap accounts for 1,663,972.84. With the proposal we search consensus to perform the following actions:

  1. Create an SDT-ETH pool on Curve v2
  2. Withdraw our liquidity from Sushiswap (1,663,972.84) and redirect it to the newly created Curve v2 pool
  3. Get a gauge for the Curve v2 pool
  4. Vote for this pool on a weekly basis with Stake DAO owned veCRV (expected APR in the current state of things would exceed 1000%)
  5. Delete all the SDT inflation incentives to Sushiswap LP

You can have a look at expected APR calculations, considering current DEXes liquidity, at the following link.

For

  • Lower inflation as the incentives will come from CRV rewards
  • The migrated pool on Curve v2 will experience lower slippage, fostering a smooth trade experience. Reduced slippage (double effect) should lead to higher volumes, and thus more revenues for Liquidity Providers, stabilizing the pool and increasing the chance to get listed on a Centralised Exchange
  • Allowing single staking in liquidity. Stake DAO would therefore be able to support the price easily when investing in its own liquidity as per SDIP #8
  • Stake DAO will accumulate CRV with its own liquidity

Cons

  • This proposal will require current Sushiswap Liquidity Providers to migrate their liquidity to Curve v2
8 Likes

lfg, this would be amazing

1 Like

Great idea !
If the sushiswap SDT-ETH pool is fully migrated, does it mean the end of liquidity purchase by Olympus pro?
Why keep incentivizing the uniswap pool and not migrate everything to curve V2?
I hope that obtaining the gauge will go better than for the sdvecrv/crv pool

2 Likes

Why keeping the SDT incentives for UNI LP ? Only for temporary purposes ?

1 Like

I have the impression that in the spreadsheet, you should have in cell C25 “=C23/C15” instead of “C23*C11/C15”.
Still a great APR :wink:

1 Like

should we proceed to vote ?

2 Likes

I know the team is in bed with Curve, but have we looke dat UniV3 via something like alpha vaults?

Support this proposal. Lets vote and implement ASAP.

What about upgrade proposal to xSDT-ETH pool on Curve?