[GIP 188] Trial Migration of Liquidity to CoW AMM
AI summary
This proposal seeks to move a portion of Gearbox's native token, GEAR, liquidity from the Curve platform to a new platform called CoW AMM for a two-month trial. The goal is to test if CoW AMM, which uses an innovative design, can generate more revenue for people who provide liquidity (liquidity providers) by reducing a common issue called Loss vs. Rebalancing (LVR). The trial will involve setting up a GEAR/WETH trading pool with $500,000 in assets and providing 2 million GEAR tokens as incentives.
If this proposal passes, Gearbox will spend 2 million GEAR tokens to incentivize liquidity on CoW AMM. Liquidity providers for the GEAR/WETH pair on CoW AMM could benefit from potentially higher returns due to the platform's design and additional incentives targeting a 10% APY. The success of this trial could lead to a long-term shift in how Gearbox manages its token liquidity, potentially increasing the efficiency and profitability for liquidity providers.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Purpose
This proposal authorizes a trial effort to migrate a portion of GEAR liquidity from Curve to CoW AMM. The trial aims to evaluate the effectiveness and long-term benefits of CoW AMM for the Gearbox ecosystem, particularly its potential to generate additional revenue for liquidity providers through its innovative design.
Execution
The following steps would be executed:
- Deploy a GEAR/WETH pool on CoW AMM with a target TVL of $500k.
- Fund 2M GEAR as liquidity incentives on CoW AMM.
- Added incentives from CoW DAO and Balancer, targeting 10% APY up to $500k in TVL.
- Run th…