Rebalancing of Base Liquidity Incentives (2024-03-22)
New
- New rewards pool of 50,000 USDC to be allocated towards Native USDC market rewards over epoch #9.
- Safety Module for Base deployment to be introduced soon.
Key observations
- DAI circulating supply is still critically low vs. total market supply.
- rETH circulating supply is still a limiting factor for growth of rETH lending market
- Utilization across all lending markets except LSTs is at optimal level.
Applied changes
- Warden has allocated 17% of epoch #9 WELL rewards towards future safety module incentives.
- Goal of this allocation is to provide sufficient incentives to grow the total amount staked on the safety module to 100M WELL.
- The targeted amount staked would provide a 30M WELL insurance fund (~$1M at current WELL price) to protect users against shortfall event on Base markets and provide ~20% APY to stakers given the allocated rewards.
- More information about the safety module is available in Moonwell docs.
- WELL rewards have been rebalanced to take into account the new USDC rewards pool allocated towards Native USDC lending market.
Specifications
| Epoch # | Total per epoch | Start timestamp | Start date |
|---|---|---|---|
| 9 | 18,682,692 WELL 50,000 USDC |
1711144800 | Fri Mar 22 2023 22:00:00 GMT |
Liquidity incentives
83% of WELL (15,506,634 WELL) and 100% of USDC epoch rewards (50,000 USDC) allocated towards liquidity incentives.
| Reward distribution (% of allocation) | cbETH | DAI | USDbC | USDC | ETH | wstETH | rETH |
|---|---|---|---|---|---|---|---|
| WELL supply | 15% | 5%→1% | 0% | 25%→10% | 45%→47% | 8% | 2% |
| WELL borrow | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| USDC supply | 15%→0% | 5%→0% | 0% | 25%→100% | 45%→0% | 8%→0% | 2%→0% |
| USDC borrow | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
Safety module incentives
17% of epoch rewards (3,176,057 WELL) allocated towards safety module incentives.