[RFC] Allocating a Portion of Gauge rewards for $PICKLE Pool 2 incentives
This proposal is to empower the Core team to allocate $PICKLE liquidity (i.e. “pool 2”) incentives according to strategic priorities like cross-chain launches and partnerships in both mainnet and cross-chain.
Currently, DILL voters control the allocation for all jars/farms in the Ethereum mainnet. This allocation is based on a total of 4,000 allocPoint and the
picklePerBlock parameter, both coming directly from MasterChef, the contract that owns the $PICKLE token. For example, one can see how DILL holders currently have voted on Gauge weights here:
When originally implementing DILL, the existing “pool 2”, the PICKLE-ETH UNIv2 LP, was added as a Gauge that DILL holders could vote on. This worked well, but started to encounter limitations as the Pickle core team entered into an agreement with Sushi to attempt to migrate that liquidity over to Sushiswap by migrating the incentives once Sushi launched their MasterChefV2 (MCv2) dual-rewards staking. As MCv2 rewards are distributed outside of our contracts, the PICKLE-ETH SLP couldn’t be added directly to DILL voting.
When the new PICKLE-ETH SLP was announced and users were invited to migrate, many answered the call. However, it was soon evident that rewards from PICKLE-ETH LP couldn’t be migrated and that those who remained in the old UNI pool were earning a better rate despite not supporting the protocol’s strategic priorities.
At the moment, the Pickle Core team is in advanced discussions with the Balancer team to jointly incentivise liquidity ($BAL and $PICKLE) for a Pickle launch in Arbitrum. Arbitrum is, according to at least this poll of the community, the most highly-anticipated launch amongst L2s/sidechains for the DAO. The initial response of the community to potentially our first-ever collaboration with Balancer has been highly positive. Understandably, this is because Balancer is one of the most well-regarded teams in the space, for its vision, innovation, and execution in general – and in particularly its stellar security reputation.
For this and other reasons, the idea of empowering the Team with the power to allocate $PICKLE liquidity incentives, an important piece of leverage when negotiating partnerships, has been floating around the community. We believe the time is right for the DAO to make a decision on this matter.
We are proposing that we set-aside 15% of the current allocPoint (0.15 * 4000) for $PICKLE “pool 2” incentives. The 15% set-aside can be re-voted on when the DAO so decides e.g. when there’s future opportunity or collaboration or when the liquidity environment changes.
The Pickle Core team may also create a new jar/strategy for the pool once we are approved on the Arbitrum token list.
Note that this proposal will supersede PIP-38 so that the Team will be managing all liquidity incentives from emissions and not from Treasury (like we currently manage MCv2 in Sushiswap).