Proposal: Should the DAO keep incentivising pBTC liquidity pools on Ethereum?

Summary: As the Uniswap liquidity mining incentives for pBTC are coming to an end, this proposal is to extend these pBTC incentives on Ethereum. Specifically, the incentives would keep going and optionally be extended beyond the current Uniswap LP (i.e. Curve, Balancer).

Abstract: Liquidity mining initiatives are populating Ethereum’s DeFi. pNetwork’s own liquidity mining initiatives are leveraged to increase liquidity on specific LPs for a variety of assets within the pNetwork ecosystem. Currently, liquidity mining programmes are ongoing for pBTC on ETH (Uniswap pBTC/WBTC LP) and PNT (Uniswap PNT/ETH LP) - these strategies are hosted on steroids.finance .

Expanding the pBTC liquidity mining incentives is aimed to increase the amount of BTC moved to Ethereum and maintain retention of the existing pBTC on ETH - all this while encouraging liquidity to sit within LPs that have strategic value for the success of the pTokens involved.

Motivation: A liquidity mining initiative for pBTC on ETH would encourage Bitcoin holders to join in the DeFi ecosystem, while creating a benefit for Ethereum’s DeFi expressed in terms of added liquidity locked in it. Its aim is to increase the total value locked within the cross-chain pTokens system while increasing liquidity for pBTC liquidity pools.

Specification: The DAO fund is aimed to grow the pNetwork ecosystem. A way to achieve this goal is to boost the adoption of the pTokens system. This proposal proposes to direct part of these funds towards liquidity mining initiatives whose goal is to create a benefit both for the success of the project and for the overall market.

The first incentives programmes connected to the pNetwork ecosystem have been rolled out and are currently running in the form of PNT incentives on the pBTC/WBTC and PNT/ETH Uniswap liquidity pools.

If approved, this proposal would extend the Steroids incentives programme for pBTC on ETH to additional incentives beyond the initial 2-months timeframe and potentially expand the programme to other liquidity pools.

If approved, an additional amount of 50,000 PNT per week will be allocated towards the initiative and distributed as an incentive to liquidity providers contributing to increase the total value locked within the pTokens system.

If approved, the programme would be extended for an additional period of 2 months.

Note that, if approved, the proposal would not exclude the possibility of further iterations on the liquidity mining activity for pBTC and would not exclude the possibility of extending the programme to other assets.