Hi all,
Upon the passage of the proposal to promote Warden Finance as liquidity manager for Aerodrome, we wanted to report to the community our plan for the launch period.
Schedule for Aerodrome launch is the following:
| Date |
Event |
| Aug 29 00:00:00 UTC |
Aerodrome launch
Airdrop for veVELO Lockers |
| Aug 30 23:00:00 UTC |
Voting and incentives period for epoch #1 ends |
| Aug 31 00:00:00 UTC |
AERO token launch
Epoch #1 starts (7 days duration) |
| Sep 08 00:00:00 UTC |
Epoch #2 starts (7 days duration) |
As AERO token is not currently launched and no historical data in regards to incentive returns is available, we currently cannot accurately predict the expected returns of any given allocation. With this consideration, we are targeting an allocation for the first epoch that is sufficient to place WETH-WELL pool amongst the most rewarded pools, yet conservative enough to prevent diminishing returns.
As of August 29 18:00:00 UTC, we have set incentives to 1% of total allocation or 527k WELL / $2,950. The allocation currently sets WETH-WELL as top 4 most incentivized pools.
We will keep monitoring activity until the period ends and may readjust the allocation if necessary.
2 Likes
We wanted to provide an update to the community in regards to our actions for epoch 0
Firstly, the WELL allocation was matched with ~100k AERO (~$34k) incentives grant from the Aerodrome launch partner program.
Secondly, during the last hour, we’ve increased the allocation from 527k to 1.58M WELL ($3000 → $9,000) to attract the remaining 100M votes (~22% of total). Voting on WETH - WELL gauge moved from 0.4% to 1.66% following the increase in incentives.
Here’s the current status of the pool.
Results
As a result of the launch of the new WELL liquidity pool on Aerodrome, token liquidity has been dramatically improved. 5% depth to sell WELL on Base is currently more than 10X the depth on Moonbeam ($1.7k → $23.5k).
WELL on Base
WELL on Moonbeam
Aerodrome TVL is currently standing at $171M a few days after launch, which makes it the largest protocol on Base by far ($150M more than Overnight Finance, in 2nd place with $23M).
Base chain TVL also has dramatically increased from $190M to $333M (+75%), which is also great news for Moonwell lending markets.
Next steps
In order to maintain WELL liquidity on the longer term, we will ensure rewards are attractive enough for LPs to stick with WETH - WELL.
Hi all,
We are excited to provide the community with updates on the ongoing efforts to optimize the allocation of Aerodrome liquidity incentives.
Summary
- We have allocated 27% (14.22 WELL) of the total budget over the course of the first 9 epochs. The strategy aims to benefit from aggressive AERO emissions distributed over the first 14 epochs.
Changes since last update:
- Voting share for WETH/WELL gauge has steadily increased from 1.82% to 3.2% of total votes.
- Pool TVL has increased by ~50% (+300k)
- Slippage for trading WELL has been reduced by about 50% across all trade sizes (5% depth = 15.1M WELL or ~$58k)
Allocation
| Epoch # |
Date |
Allocation |
WELL Incentives |
TX |
| 0 |
Aug 31 2023 |
3% |
1.58M ($8,899.9) |
1 2 3 |
| 1 |
Sep 08 2023 |
3% |
1.58M ($7,835.7) |
1 2 |
| 2 |
Sep 15 2023 |
3% |
1.58M ($6,717.9) |
1 |
| 3 |
Sep 22 2023 |
3% |
1.58M ($6,859.1) |
1 |
| 4 |
Sep 29 2023 |
3% |
1.58M ($6,669.0) |
1 |
| 5 |
Oct 06 2023 |
3% |
1.58M ($6,434.6) |
1 |
| 6 |
Oct 13 2023 |
3% |
1.58M ($5,760.5) |
1 |
| 7 |
Oct 20 2023 |
3% |
1.58M ($5,851.8) |
1 |
| 8 |
Oct 27 2023 |
3% |
1.58M ($6,236.5) |
1 |
Total spending: 14.22M WELL (27% of total budget)
We plan on keeping the same allocation until epoch #14 In order to benefit from growing AERO emissions. We may start reducing incentives to more sustainable levels (1% per epoch) once AERO emissions are decreasing, depending on incentives allocated by other protocols.
Results
Voting and ROI per epoch
| Epoch |
Incentives |
Incentives (USD) |
Fees (USD) |
Fees & Incentives APR |
Votes |
%Votes |
ROI** |
| 0 |
103k AERO* 1.59M WELL |
$ 10,252.0 |
- |
|
7,450,984 |
1.83 % |
- |
| 1 |
1.58M WELL |
$ 7,835.7 |
$ 194.3 |
72.66 % |
4,632,297 |
1.07 % |
221 % |
| 2 |
1.58M WELL |
$ 6,717.9 |
$ 2,355.7 |
159.92 % |
5,443,417 |
1.24 % |
79 % |
| 3 |
1.58M WELL |
$ 6,859.1 |
$ 1,231.9 |
100.72 % |
8,893,337 |
2.02 % |
96 % |
| 4 |
1.58M WELL |
$ 6,669.0 |
$ 1,185.2 |
99.24 % |
9,336,135 |
2.11 % |
145 % |
| 5 |
1.58M WELL |
$ 6,434.6 |
$ 1,457.7 |
99.76 % |
10,659,782 |
2.40 % |
141 % |
| 6 |
1.58M WELL |
$ 5,760.5 |
$ 528.2 |
101.15 % |
13,644,984 |
3.03 % |
104 % |
| 7 |
1.59M WELL |
$ 5,851.8 |
$ 671.2 |
106.04 % |
14,482,935 |
3.21 % |
141 % |
| 8*** |
1.58M WELL |
$ 6,236.5 |
$ 593.1 |
103.73 % |
14,471,643 |
3.24 % |
161 % |
*103k AERO was granted by Aerodrome to the Moonwell community as part of the Aerodrome launch partners program.
** ROI = AERO rewarded to LPs per incentive spent
*** Projected Votes, %Votes and ROI for epoch #8 as of Oct 23 2023
WELL Token Liquidity
Slippage for trading WELL has been reduced by roughly 50% since the last update.
Pool Performance Metrics
Protocol Yield
2 Likes
