Allocate TRIBE from the DAO Treasury to liquidity mining incentives on the Saddle d4 pool (LUSD, alUSD, FRAX, FEI) for constant distribution over 1 year. Saddle is a stablecoin optimized AMM similar to Curve. The goal of this pool is to provide liquidity to top decentralized stablecoins to help reduce ecosystem dependence on USDC/USDT. Any TRIBE allocated would be paid back to the treasury if we upgrade the staking rewards per the existing discussion here: MasterChief Staking Rewards Upgrade
There is a kicked off discussion around adjusting the current staking rewards distribution by leveraging a new rewards contract similar to SushiSwap’s MasterChef. This will take time to implement and audit. In the meantime we have an opportunity to collaborate with some of the best decentralized stablecoins (FRAX, LUSD, alUSD) in a Saddle d4 (decentralized four) pool. Saddle is a StableSwap AMM which has low slippage for pegged assets.
This proposal focuses on allocating some TRIBE staking rewards in conjunction with the other communities which will all discuss adding their own rewards for an expected 4x rewards.
This proposal would allocate TRIBE from the DAO treasury for rewards to liquidity providers of the d4 pool. These TRIBE will be paid back to the treasury from the existing staking rewards if and when the upgrade to the MasterChief takes place.
The amount to allocate should roughly align with the ranges from the other communities involved. We are expecting this to be between 1-10% of the current reward distribution.
For example, an amount of 5,000,000 TRIBE (~3m USD) would translate to a 6% APY on 50m TVL. If all 4 tokens allocate a similar amount of rewards, then the APY would jump to 24% for this amount of TVL. This represents ~3.3% of the current staking rewards distribution.
Benefits to the Tribe:
- Additional liquidity for FEI
- Peg support through StableSwap AMM
- Alignment with top decentralized stablecoins
- Reducing industry dependence on USDC by providing liquidity between viable alternate stables