[PCP-3] - Seamless Protocol Native USDC Reward Incentives

General
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TL;DR Summary

Gauntlet is leading a program to incentivize deeper utilization of native USDC across the Base ecosystem. As such, Seamless protocol contributors and the Seamless community have partnered with Gauntlet, securing a $50k USDC grant for incentivizing Native USDC markets. This proposal aims to update the Seamless Protocol reward schedule, allocating the $50k grant over a 1-month period to boost rewards on the Native USDC sToken markets (supply side). Rewards will be distributed in Native USDC tokens.

Proposal for this specific update to platforms rewards are:

  • Rewarded market(s)? Supply side of Native USDC market (Native USDC sToken)
  • Schedule? ~30 days (1 month) - targeting March 14th, 2024 (pending onchain governance execution)
  • Reward type? Native USDC
  • Amount? 50,000 Native USDC

Context & Motivation

The Seamless Protocol community aims to facilitate a healthy migration of liquidity from USDbC to Native USDC, leveraging its position as one of the largest DeFi protocols by USDbC TVL. This transition will contribute to a more seamless and less-fragmented future for stablecoin liquidity on Base DeFi. The initial grant focuses solely on incentivizing this transition, with potential for future grants based on the results and sustainability of the 1-month test.

Specifications/Technicals

Given the urgency and positive impact of the proposal, we propose utilizing the fast track procedure outlined in [GP-2] here. Once a proper threshold of 4/5 the level 2 active DAO members approves the proposal, a concurrent/fast track onchain vote can be initiated without the need for a snapshot labs temperature check. Detailed technical specifications will be provided shortly or via the onchain payload for the community to review while voting.

Look forward to further community thoughts on this one!

Also, for clarification - as the OP - it is implied that I do support this proposal and fast track as well

5 Likes
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We should migrate from USDbC. On Seamless we have 30x more USDbC supplied then native USDC. I support this proposal.

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i do support this proposal and a fast track as well

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I fully support this proposal and using the fast track process. There is very obvious value to the community, I would be very curious to hear any counter arguments to this.

To help Gauntlet achieve its objective, we should ensure that supply and borrow caps are not an impediment to USDbC ā†’ USDC migration on Seamless. Maybe @chaoslabs could help provide some guidance on safely adjusting the caps?

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Yes please!

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this would be AWESOME! With esSEAM rewards in place, these USDC rewards could really supercharge demand for USDC supply helping folks also consider swapping from USDbC to USDC for adoption of native usdc

All in favor and excited to see how this plays out.

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iā€™m fully in favor of this proposal and side with exercising the Fast Track procedure.

my one question:

Will these incentives be given only to Lending (supply-side) markets or will those providing liquidity and staking their LP tokens also obtain a % of this brief incentive program?

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It was clear from the beginning that once liquidity is sustainable and security allowed we would need to proceed with the migration from USDbC into a native USDC. There is no doubt that native token is always better than any other analogues, even so secure as USDbC.

Having this in mind, I fully support this proposal and the fast track as well.

1 Like
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This is an exciting initiative to drive more native USDC demand. In the long run, consolidating liquidity between USDbC and USDC native will be good for Base.

I support the proposal and recommend using the Fast Track as well.

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It looks like this has been proposed onchain (SIP-5), get ready to vote!

2 Likes