Rebalancing of Base Liquidity Incentives (2024-06-14)
Updates
- USDC rewards are not renewed for this epoch.
Key observations
Lending markets
- All markets are at healthy utilization level (below kink).
- DAI and rETH circulating supply still low.
Source: Warden Finance
Safety Module
- Total deposits: 280M WELL ($9.8M)
- Current yield: 10.1% APY
Safety module currently provides an insurance fund of $2.93M against bad debt for a total exposure of $92.27m TVL (3.1% coverage)
Applied changes
- WELL supply-side rewards for USDC lending market have been significantly increased to compensate for deprecation of USDC rewards.
Specifications
| Epoch # | Total per epoch | Start timestamp | Start date |
|---|---|---|---|
| 12 | 21,610,576.92 WELL 0 USDC |
1718402400 | Fri, 14 Jun 2024 22:00:00 GMT |
Liquidity incentives
72% of WELL rewards (15,621,035.96) allocated towards liquidity incentives.
| Reward distribution (% of allocation) | cbETH | DAI | USDbC | USDC | ETH | wstETH | rETH | AERO |
|---|---|---|---|---|---|---|---|---|
| WELL supply | 10%→5% | 1%→0.5% | 0% | 16%→27% | 60%→57% | 6%→4% | 2%→1.5% | 5% |
| WELL borrow | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
Safety module incentives
28% of WELL rewards (5,989,540.972) allocated towards safety module.
We have increased the staking module rewards allocation for the next two epoch in proportion to the recent protocol TVL growth on Base. Goal of this change is to provide a bad debt insurance fund that stays in line with the protocol’s total exposure.
| Epoch # | Emissions per second | Emissions per epoch (28 days) |
|---|---|---|
| 10 | 0.89627551165 WELL/s | 2,168,269.72 WELL |
| 11 | 0.89627551165 WELL/s | 2,168,269.72 WELL |
| 12 (present) | 2.47583538590 WELL/s | 5,989,540.97 WELL (176% increase) |
| 13 | 2.47583538590 WELL/s | 5,989,540.97 WELL |