TIP-019 Begin Incentivizing Liquidity To tBTC v2 Curve Pool

Proposals
1

Prior to the official launch of the tBTC v2 bridge we will need to have a plan to ensure a liquid market.
Rather than waiting for launch to figure this out, I propose that we preemptively direct incentives towards the tBTC v2 Curve pool.

There are two reasons we should do this:

  1. As discussed by @mhluongo on Discord, to establish a Yearn vault we need to have rewards flowing to the tBTCv2 pool. Ideally, the most efficient approach would be that we simultaneously do this with Yearn on launch. However, given that Matt’s experience coordinating this with the yearn team has demonstrated this will be a slow process, we should start the process sooner rather than later.
  2. As we learned with the T launch: being prepared for the launch is incredibly important. Unlike with T, we have the opportunity to prepare the liquidity before we open the bridge with the v2 tBTC in circulation right now. Doing this will help us get a head start and help us incentivize the remaining v1 holders to convert the tBTC.

How much?
I suggest that we start incentivizing with 300k T and adjust upwards or downwards based on results after the first epoch.

Links
Curve tBTC Pool with 300 tBTC v1: Curve.fi
Curve v2 Pool with 0.8 tBTC v2: Curve.fi

6 Likes
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Thanks @LakeLaogai for the proposal! I’m a strong proponent — let’s plan ahead and give LPs and the rest of the market time to get the message.

Incentivizing the v2 pool will also give us the opportunity to push for v1’s gauge delisting on Curve. I don’t think that’s a strict requirement, but it is another tool we have to help manage this migration.

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The Treasury Guild previously discussed the possibility of removing v1’s gauge and there was some hesitation given that such a thing has only happened twice to date: first with alUSD and then with USDM. There was some concern that there might be some optics/reputational risk of having tBTC in that group.

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Recently, the $/veCRV was significantly more attractive for direct veCRV incentives over vlCVX incentives. We also have the OTC discussion for the T+ETH pool incentives in progress and tBTCv2 incentives could potentially be rolled into that.

For this proposal, should we assume the incentives will be for direct veCRV incentives? Or is this as a blanket approval, the mechanics of which will be decided at implementation time based on whatever is most cost-effective?

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Fair enough — I’d rather do this the “soft” way with better incentives regardless.

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I fully support this proposal. There are 300tBTC and almost $53mn in the v1 pool. Incentivizing a move to v2 seems a smart move now to build up momentum for the bridge launch.

As to where use these incentives, rather on Convex or Bribe.CRV frontend to bribe veCRV holders I suggest a general approval by tokenholders for 300k biweekly, adjustable in time based on the outcomes, and let the TG handle mechanics based on what makes most economic sense.

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Looks good to me and makes sense. Since there’s no opposition, I think we should move this to a snapshot.

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I second the motion to move to snapshot! Let’s go :rocket:

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