While I don’t believe slow and steady is the way to go for incentives, keep in mind that what I’m proposing only ready’s the treasury to incentivize on Arbitrum and BASE. We will want to be careful how we apply these incentives so we are not giving away the farm but we need to be able to maneuver quickly. The speed at which we incentivize comes later, hopefully only a little later. My hope is to have the ARB in hand for Arbitrum and by incentivizing the ARB vaults with ARB from the get go we have the potential of getting contributions from the Arbitrum Foundation. Same goes for BASE which does not yet have a token. We can generate big BASE activity and in the event BASE tokenizes then we will likely be awarded for our proactive approach. Let’s make the necessary treasury moves and then discuss the approach.
I would describe the 2% APR POOL drip as a slow and steady approach and in this case it’s important we don’t rush to distribute too much at once resulting in price dilution that will offset any benefit. The intention here is to model the POOL drip based in POOL’s USD price to 2% of the TVL in a vault. If a vault is producing far less yield, we could keep it at 1% instead. Let’s build POOL volume.