Reward Plan for CRETH2 Liquidity

Summary

Approve 12.8k CREAM reward for bootstrapping CRETH2 liquidity.

For: Approve 12.8k CREAM reward for CRETH2 liquidity
Against: Do nothing

Motivation

To avoid potential risk and exploit, the protocol needs CRETH2 liquidity to be stable at a certain level. However, the initial reward plan will end by 11/25 00:00 UTC +8. Without CREAM reward, it’s quite possible that the liquidity will go down, reducing the liquidity available for liquidators should that need arises. That’s why we need a new plan for CREAM reward for CRETH2.

Community member Sherlock made the suggestion in Longer incentive for CRETH2/WETH liquidity provider and the core team agrees with this view of extending incentives for CRETH2 liquidity pool.

Specification

The reward plan is to distribute 12.8k CREAM in total. This 12.8k includes the first, ongoing 6k CREAM distribution (3k CREAM in CRETH2 and 3k in CRETH2/WETH pool).

After the first-week reward is over:

  • 1k CREAM/week for 4 weeks, extending the CRETH2/WETH swap pool rewards
  • New: CRETH2 Supply/Borrow 700 CREAM/week for 4 weeks

So now is my situation can get any rewards whom i have staked eth into creth few days ago

I don’t think there is any risk here as long as there is no Cap on CRETH2 ( seems there is none on contract level? ) If there is price discrepancy, well lucky be arbers…

The voting will start soon

since CRETH2 have been constantly trading from 8 to 20% lower than ETH for long period of time, it is clear that there is no Arbing ability when CRETH2 value is lower than ETH, since it is a one-way route.
I believe CRETH2 attractiveness should be enhanced through increasing collateral factor on par with ETH, that is 75%.