Strudel Liquidity Incentive Revision (SLIR)

Uniswap v3 is upon us and we have been looking at the functionalities of the farm and have now started to write our new farming contracts. In the meantime, we feel like it’s time to review once again our incentive schedule to best align them to the goals of the Strudel protocol.

The Current Setup

As we continue to bridge new assets, we run into the issue of diluting the rewards and spreading the available liquidity. Furthermore, we find there’s not enough connection between the $TRDL liquidity and the rest of the pools. Therefore a solution is required.

SLIR: A Phased Approach

The Mare Ibrium Fund

We have modified the MI Fund to hold the following tokens in equal allocations (~16.67%):

  • $TRDL
  • vBTC
  • vBCH
  • oneVBTC
  • TWA/ETH LP
  • ETH

With this in mind, we will allocate 40% of the $TRDL rewards to this LP since it is the most capital-efficient way to incentivize the Strudel liquidity. The intention of this is to have the total value locked support itself by arbitrage and simplify the number of pools. Once we complete the new v3 farms we will move the liquidity incentives from v2 into Uniswap v3 pools for $TRDL, vBCH, and vBTC. Below you can see the proposed settings for the two phases:

SLIR allocation summary

Conclusion

We hope to pass the decision of the allowance of rewards from the farm to gTRDL holders once we achieve a steady-state product with the pegged assets. We feel like we’re on the doorstep of this milestone which we have worked so hard for.

Strudel on!

Strudel Finance is the first and only one-way, trustless bridging protocol linking Bitcoin (BTC), Bitcoin Cash (BCH), and other centralized assets to DeFi.