AELIP-9: Balancer + AELIN/ETH Pool 2 on Ethereum L1

Author
StatusImplemented
ImplementorTBD
ReleaseTBD
Created2021-01-31

Simple Summary

This AELIP proposes to create an AELIN/ETH pool 2 on Ethereum L1 that will emit 50 AELIN tokens over the first 30 days, followed by 25 AELIN tokens over the next 30 days and another 25 AELIN tokens over the final 30 days for a total incenvtive period of 90 days.

It also proposes to update the plans outlined in AELIP-3 for the Balancer pool on Ethereum L1 to emit 150 AELIN tokens over 90 days to a pool consisting of SNX-AAVE-CRV-BAL-GRT-YFI-LINK-UNI.

Abstract

This AELIP proposes to create a new pool 2 on Ethereum L1 and to update the plans outlined in AELIP-3 for the Balancer pool on Ethereum L1 as well.

There will be 150 AELIN emitted to the Balancer pool over 90 days instead of the 250 AELIN tokens emitted over 2 weeks in AELIP-3. The tokens in the Balancer pool will be SNX-AAVE-CRV-BAL-GRT-YFI-LINK-UNI.

The 100 AELIN tokens withheld from the Balancer pool will be applied to an AELIN/ETH pool 2 on Ethereum L1. The 100 AELIN tokens will be emitted over 90 days. The first 30 days will emit 50 AELIN tokens and the final 60 days will emit the other 50 AELIN.

Motivation

On February 3rd a vAELIN to AELIN conversion contract will be coming online, unlocking a significant amount of AELIN tokens distributed to SNX stakers. The goal of the AELIN/ETH pool 2 on Ethereum L1 is to entice SNX stakers to provide liquidity with their released AELIN tokens. 100 AELIN tokens will be allocated to this pool 2.

Additionally, the aim of the Balancer pool is to distribute AELIN tokens to a wider community. By including token holders from the following 8 communities: SNX-AAVE-CRV-BAL-GRT-YFI-LINK-UNI the community of AELIN holders will increase.

Since the AELIN token is already trading at a higher price than when AELIP-3 was passed, it makes sense to reduce the Balancer pool amount by 100 AELIN tokens which will be applied to the pool 2 on Ethereum L1 instead to improve AELIN liquidity.

Specification

Overview

AELIN/ETH Pool 2:

On the Optimism network at Feb 3rd → 8am ANZ, 1pm PT, 10pm CET a vAELIN to AELIN conversion contract will be deployed. This contract will allow vAELIN holders to claim their AELIN with no vesting period and will dramatically increase the number of AELIN in circulation.

Approximately one hour after this contract is deployed (at Feb 3rd → 9am ANZ, 2pm PT, 11pm CET) a pool 2 of AELIN/ETH on Ethereum L1 will start emitting 50 AELIN over a 30 day period to those who stake their LP tokens. After this initial 30 day period the pool 2 will continue to emit 25 AELIN per 30 days for another 60 days for a total incentivized period of 90 days.

Balancer:

On Ethereum L1 Balancer, a pool consisting of SNX-AAVE-CRV-BAL-GRT-YFI-LINK-UNI will be created followed by a 48 hour period for anyone who wants to enter the pool and stake their Balancer Pool Token (BPT). After the 48 hour period is over, AELIN rewards will start emitting at a rate of 50 AELIN per 30 days over a 90 day period for a total of 150 AELIN.

Rationale

The thought behind is this AELIP is to remain true to the intent of the original AELIP-3 but also take into account AELIN is more valuable when the Balancer pool was originally planned. Balancer not being live on the Optimism network made sticking to AELIP-3 difficult.

By moving 100 AELIN over to a pool 2 we can maintain the original intent of AELIP-3 and also use a portion of the extra funds to increase liquidity for the AELIN token.

Technical Specification

n/a

Test Cases

n/a

Copyright and related rights waived via CC0.