I plan on introducing a new proposal later today or tomorrow to adjust some liquidity incentives. The goal is to see if we can increase TVL of the Balanced DEX by spending BALN on “cheaper” liquidity.
BALN/bnUSD total liquidity = ~10M
BALN/bnUSD daily rewards = ~10k BALN
Liquidity per BALN = ~1,000 USD of TVL per 1 BALN of daily inflation
IUSDC/bnUSD total liquidity = ~1.5M
IUSDC/bnUSD daily rewards = 288 BALN
Liquidity per BALN = ~5,200 USD of TVL per 1 BALN of daily inflation
As you can see from the above example, we get way more for our money by incentivizing this stablecoin pool. This doesn’t mean we need to go to extremes and incentivize only “cheap liquidity”, but it’s a strategy I’d like to explore. It’s good to be nimble with these things.
Side note: as mentioned in the latest blog post we’re working on a way to make this a constant vote, where people can stake their BALN and vote how they think allocations should be, then the network will take an average of everybody’s opinion.
Here is the proposed change (also 0.5% to USDS/bnUSD which is not shown here because it’s not added to the UI yet)