10% LP Stimulus Plan

In our last community call we finalized a number of details on the 10% LP Stimulus Plan, including rallying support for Chris’s proposal for a fairer incentive system.

Here are the plan details:

Basic Earning

  • All liquidity earns points at the following rates:
    • 1 pt per $1 of TVL per day
    • 1000 pts per $1 of fees earned per day
  • 1.3x multiplier for OG’s before Dec 1st 2023 at launch.
  • 1.25x multiplier for everyone else at launch. This reduces to 1.20x in Mar, 1.1x in Apr
  • Multipliers are wallet based. And will be revisited in May.

You will not earn points in the Dynamic Vaults. Only Dynamic Pools, DLMM, and Multi-token pools.

Points Starts Jan 31

Beta Tester Bonus Package
For LPs who have helped us during our DLMM Beta period from Dec 1st to Jan 31, we will come up with a bonus points package for everyone that will be determined at the end of our points system.

Dynamic Points System
The points system is intended to be dynamic to in order to allow us to improve the system, support partners, and curb abuse. We will be adding bonuses from time to time and plan to have one for the JUP launch. These bonuses will stack on your existing multipliers.

We may have to make adjustments to points based on people abusing the system. So, we recommend LPing in any x/SOL, x/USDC, x/USDT liquidity and avoiding exotic pairs as they may not end up being counted.

Tiers
Both large and small LPs bring value to Meteora. While large LPs contribute to TVL/volume, the majority of product improvements and new use cases come from working with small LPs. We are thinking of employing a tiered system for MET tokens in order to ensure a more balanced distribution of MET. That said, Meteora’s main stakeholders are expert LPs who know how to generate profits from their liquidity on our DLMM. The tiering system will be finalized after the points system has ended and we have all the data, which will be shared with the community.

MET Liquidity Event
The plan is to have a MET liquidity event once our KPIs reach a major milestone that will be determined by the DAO.

Token Schedule
A total of 10% of MET will be allocated according to this proposal. The council will determine the final schedule, but we are thinking of a schedule of 1% per month of MET starting when we begin the incentive program. If the token is not liquid, LPs will accrue points representing the token amount.If MET has a liquidity event 2 months after the start, the points system will map to 2% of the token and from there on, LP incentives will switch to the token.

For more details on the proposal you can read the medium post.

66 Likes

For those who missed Chris’s amazing post, you can all read it in discord here.

25 Likes

Great proposal. Thanks Ben and team for the hard work setting this up and the consideration given to community participation. Excited to see this move forward.

11 Likes

So happy for the great product! I’ve been using LFG/SOL’s DLMM for a while. There is a big pain in only shutting down and starting a new DLMM during big swings, which brings a lot of extra cost and also lost time. It would be great if the tokens could be migrated directly to the new Price Range!

9 Likes

Why can’t OG’s be before January instead of December 2?

4 Likes

Great to see those weeks of intense discussions bear fruit! I think this is a straightforward points program that is pretty equitable for both old and new LPs, while leaving room for some optimization after a few months based on a performance review. Looking forward to more TVL and active LPing in Meteora!

Recent community members would probably be excited to hear more about this bonus beta test package!

For instance, one question raised was whether this is a separate points package on top of the multipliers etc.? So apart from the potential beta test package, everyone starts at 0 when the point system launches?

Beta Tester Bonus Package
For LPs who have helped us during our DLMM Beta period from Dec 1st to Jan 31, we will come up with a bonus points package for everyone that will be determined at the end of our points system.

8 Likes

A lot of the OGs before Dec 2 have been with us since FTX collapsed and the bear. That was also before the announcement of our 10% Stimulus plan.

But for anyone who’s LPing now, we will have a Beta Tester Package as thanks for helping us during our DLMM Beta period.

8 Likes

Great proposal. Thanks Ben and team for hard work. give back the early testers

5 Likes

thank you, appreciate the feedback. The cost for opening/closing positions should just be the gas fees. You pay rent to open a position, but, get it back when you close it.

The one other cost is if your position has bins that have not been created before, you will have to pay the rent to create those bins. But that is a one time cost for everyone. You won’t have to pay it if someone else has created them.

4 Likes

Agree to this one. Thanks Ben for your hard work on this one. Lets put it to vote.

3 Likes

Thank you, we’ll be voting on this after the JUP launch!

5 Likes

I think this proposal is missing part of what tokens are going to be counted and how.
New trash tokens can be easy wash traded for points. Whitelisting tokens also does not sound like the best idea.
Any idea on that front ? Maybe just limiting to majors is a solution ?

4 Likes

The goal is all liquidity. With points, we can do the analysis to detect anyone abusing the system and zero them out or re-weight them.

However, I think you have a point. May be putting out some guidance would be helpful. e.g. We recommend LPing in any x/SOL, x/USDC, x/USDT liquidity. And avoid exotic pairs as they may not end up being counted.

5 Likes

Great plan, now let’s send it

3 Likes

Very excited to experience and be involved in Meteora and it’s governance. Hopefully we get referrals not long after points roll out !

UI suggestion I hope the team will consider putting in when points roll out:

  • Indicator next to Pool Pairs that indicate whether the pool is eligible to earn LP points/rewards
  • Dark Mode for the real degens.
  • Configuring a more “efficient” layout for split screen tab view on computer.
  • A profile page where ppl can see their points, multipliers, refferals, depostis etc…
5 Likes

Let’s wait for the token and validate the idea :slight_smile:

1 Like

Great suggestions, shared w/ the team.

2 Likes

Exciting to see this proposal take it’s final form after weeks of discussions in the community! We’re supportive of the proposal here and believe it’s a very fair distribution.

2 Likes

super happy that i read this. i had many of my assets in the vault, now i am well prepared

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thank you, really appreciate your contributions to our discussions around this proposal.

2 Likes