Rewards matching for tBTC pools

Summary:

A schedule for KEEP rewards to tBTC pools.

Abstract:

After an initial 4 weeks of 50k KEEP / week in rewards across the tBTC metapool and any other tBTC pools that might be launched, the Keep team would like to offer to match any CRV rewards to tBTC pools in KEEP, up to 300k KEEP per week, for at least 8 weeks.

Motivation:

The idea of a match came up in Keep community discussions around rewards. We’ve struggled to choose the “right” amount of rewards for Curve liquidity pools, especially when rewarding a pool heavily with KEEP might mean less CRV rewards to LPs. A 1:1 rewards match makes tBTC pools similar to “joint ventures” between the Curve and Keep communities, and will hopefully yield the best outcomes for LPs and token holders alike.

We’re also interested in seeing tBTC LPs stake KEEP and become signers — access to capital and a preference for BTC exposure will make for strong long-term stakers.

Specification:

Every gauge weight vote, the Keep team will record the spot CRV/KEEP price on Uniswap, and use that to calculate a weekly KEEP reward to be split across all Curve tBTC pools.

For:

More rewards on Curve mean more liquidity and LPs. KEEP is especially interesting as a fairly new asset that isn’t widely distributed elsewhere; Curve will be the only place to earn KEEP for a while.

Against:

The outcomes of a positive vote here are difficult to enforce, and might need to act more as community steering.

Poll:

  • I’d vote for higher tBTC gauge weights with matching KEEP rewards
  • Matching rewards doesn’t change how tBTC pool gauges should be weighted
  • The idea is interesting, but needs work (share!)
  • I’d rather not see matching KEEP rewards (why?)

0 voters

Looking forward to your thoughts!

6 Likes

I like the idea of having matching rewards.

Just a quick note, we don’t use Discourse polls anymore because too many people try to manipulate but since this should be non contentious so can stay.

5 Likes

I’ve already taken the “leap” into the tBTC pool since I’m a believer in the project and would be fine with any plan frankly. Voted for matching rewards to achieve the intended goal…

2 Likes

As a holder of x% of the tBTC pool liquidity I was planing to use all the keep I receive to become a signer anyway, so I like the idea for maximum KEEP rewards. So rewards should be such that LP wiht significant % should be able to accumulate enough keep for couple of months to become signers.

edit:
When we can realistically expect the KEEP rewards to start flowing?

4 Likes

When we can realistically expect the KEEP rewards to start flowing?

Likely this week, maybe even early this week. I’ll try to have clarity Monday

2 Likes

Any retroactive rewards for early LPs that helped initiate the pool?

2 Likes

Do we move forward with this proposal?

We’ve been informed it’ll be a few more days for KEEP rewards

1 Like

Matt,
I have a lot of respect for you and what you’ve accomplished with tBTC, and I’m very glad you worked thru the issues of June and got tBTC launched.

My only concern is whether the math is approximately right. Here’s what I mean. I’ve been in the tBTC pool for about a week now. In that time, the tBTC gauge has earned me a good amount of CRV and but only around 15 cents worth of KEEP. So if 50k KEEP/wk goes to 300k KEEP/wk and my 15 cents goes to 90 cents… well… ideally, we can figure out a way for the KEEP rewards to be meaningful.

The amount we are getting now in the tBTC pool was just a trial amount. We’ll have to wait for the actual rewards to begin sometime next week to ascertain the actual level to expect.

Yep, as stated, we haven’t actually started rewards yet — just enough to make sure the gauge worked as a trial. I’ll share in this thread when they go out :slight_smile:

I don’t know how LPs will respond, but as tBTC has a supply cap for a couple more weeks, I’d expect the returns are pretty good.

2 Likes

Rewards are live! 50k KEEP has been deposited for week 1, and will go for 3 more weeks before moving to the match.

Depending on pool growth and KEEP price, we might also want to bump up the 300k KEEP / week max, or go 1:1 up to 300k KEEP and maybe 2:1 up to 600k KEEP. Let’s see how it goes :slight_smile:

If any LPs are interested in staking KEEP to earn more in the stakedrop, come visit us in Discord and we’ll get you started.

6 Likes