Title: DPI Liquidity Mining - June 2021
Created: June 7, 2021
Extend INDEX liquidity mining incentives for the DeFi Pulse Index (DPI) Set for 30 days with an issuance of 567 INDEX/day (approx. $17,500/day; 30-day MA), a 37 INDEX/day increase from the previous 30-day period, or approximately 7%.
7-day Average Liquidity (Uniswap V2: DPI-ETH Pair): $51,432,912
+2% Depth (As of June 4, 2021, at DPI price of $380.26): $521,855
-2% Depth (As of June 4, 2021, at DPI price of $380.26): $520,287
Percentage of target liquidity achieved (7-day trailing): $51.43MM/$55MM = 93.51%
Further calculations here: DPI Liquidity Mining - June '21 - Google Sheets
Extend the current LM campaign for DPI-ETH Uniswap pair for 30-days using the existing contract (as outlined in IIP-28) for an additional 17,010 INDEX (increased from 15,950 for the May 2021 LM Update No. 7 linked above). No action would be necessary for existing liquidity providers.
Despite broader market price volatility in May 2021 (DPI Specifically: High: $635.50 Low: $248.48) 7-day trailing liquidity on Uniswap is currently within 10% of the target of $55MM. Liquidity dropped to a minimum of $38,710,717 on May 23, 2021 (70.38% of $55MM target) and reached a maximum of $98,201,488 (178.55% of $55MM target) on May 14, 2021.
This proposal is in keeping with the mandate of IIP-28 and would establish the LM incentive for the third and final 30-day period of the 90 days covered by that IIP.
- The result of the adjusted LM incentive has been calculated using the targeted Uniswap v2 Liquidity for the ETH-DPI pair and falls within the 300-1,000 INDEX/day range as established by IIP-28.
- DPI is currently the market leader and sustained liquidity is a core driver for broad spectrum adoption.
- Maintaining continuity of incentives will likely retain current LPs.
- Uniswap v2 is the dominant market for DPI with a +/-2% depth of ~$520k.
- While there have been discussions regarding the broader implications of LM ( Liquidity Mining Strategy ), this proposal is limited to the mandate of IIP-28 and would be the third and final 30-day extension of incentives under that IIP.
This post is the formal recommendation of the rewards for days 61-90 as per IIP-24. Implementation is currently planned under the existing mandate; no action is required by the community.