[PCP-8] - Seamless Spring - Protocol Rewards Refresh #2

TL;DR Summary
Platform reward emissions are ending on May 9th (in 30 days). Proposing an extension of the platform reward budget by drawing down on the SEAM in the short governor timelock.

Proposal for platforms rewards are:

  • Continue rewards? YES
  • Schedule? 60 days (~2 months) - starting ASAP upon onchain execution of budget (i.e. the onchain funding of reward pool from DAO governor). Community re-examination and discussion to occur once a month or as-needed, as reward schedules can be updated/modified by Community Guardian (as of [SIP-7] execution).
  • Reward type? Utilize both SEAM and esSEAM
  • Amount? TBD by Community Guardian in consultation with the community. Current ask is for the 433,804 SEAM in the short governor timelock to be utilized as a two month budget across all existing/to-be-launched markets on Seamless Protocol

Context & Motivation
Seamless Protocol has observed large effects on platform liquidity in response to rewards. Starting with the initial TGE rewards, rewards refresh #1 and most recently the move towards esSEAM, the platform has seen fluctuations in TVL across key markets depending on the rewards available. The Seamless community should continue examining ways to utilize rewards effectively, and the most recent iteration would be to include both SEAM and esSEAM rewards on key markets.

The current suggestion is to weigh rewards heavily towards the Native USDC and ETH markets, these are bluechip markets that see larger and larger demand from the community (as well as future ILM strategies being developed). With competitive reward rates across DeFi, it’s important for the Seamless Platform to keep up with rewards (while not overcompensating).

As such, it is suggested that the DAO fund a 2 month budget platform reward budget of 433,804 SEAM, with reward schedules to be set by the Guardian Multisig, with further input from the community taken into consideration.

Under this proposal, the rewards pool for markets on Seamless Protocol will gain an additional 433,804 SEAM budget to be deployed over two months (“Seamless Spring”). This SEAM will be sourced from the short governor timelock (and in a corresponding move, the short governor timelock will claim some of the DAO vested SEAM back into the wallet). Seamless Spring rewards will be distributed as both SEAM and esSEAM during the two month period after onchain execution of funding the budget.

Additionally, it is important to re-highlight the “Community Reward Review” period concept, where the last week of each month can be utilized as an open discussion period to collect community comments, thoughts and feedback.

Lastly, with the passing of sister proposals [GP-4] and [SIP-7], the Community Guardian will assume responsibility of updating reward schedules at a micro-level, and direct the approved & funded DAO budget to relevant markets on the Seamless Protocol platform.

Technical specifications/payload will be presented as soon as possible.

Encourage comments from the Seamless community as well as esSEAM/SEAM ratio recommendations. Thank you!


HUGE supporter of this proposal. The geyser has remained a cornerstone incentive feature for the Seamless community, and underlying protocol. Not only has this assisted with improving Seamless TVL metrics but it also demonstrates the community’s conviction.

Leveraging the SEAM within the short governor timelock is a very reasonable ask.

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Given the empirical evidence which supports that rewards => growth, it makes a lot of sense to allocate DAO budget to further promote this effect.

I am in support.


Fully support this proposal as it aims at making the protocol more attractive for LPs.
Have just one question, regarding

Is it going to be a separate proposal or will be discussed more informally?

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I agree with the thesis that rewards will drive TVL and user growth for Seamless. Seamless Spring! I like the sound of that!

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The proposal looks good to me - I would be in full support to get this in motion ASAP. For the rewards distribution of the 433,804 emissions, I’d recommend splitting that into 75% esSEAM (325,353) and 25% SEAM (108,451). That distribution enables two kinds of rewards for the users that prefer either type.


This is an item to align on in terms of how much of the reward amounts go to esSEAM vs SEAM. Pls see above recommendation from @daryl on the split between between the two.

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I support continuing the rewards, and even though I liked giving rewards in esSEAM to achieve long term participation, we saw a large drop of TVL after moving rewards from SEAM to esSEAM only. Therefore, giving both in some proportion makes a lot of sense, and 75/25 proportion proposed by @daryl looks like a good start.

This makes sense - we’ve seen protocol TVL fluctuate heavily with rewards. The current market conditions are seeing large reward rates across many peer platforms, it would make sense to refresh the reward schedule on Seamless, especially with the looming deadling of 5/9/2024 being the end of the previous reward schedule.

As far as the breakdown, 75% vs 25% makes sense. I would personally say the community should monitor the effectiveness of SEAM vs esSEAM closely and be willing to adjust the rates “mid-stream” based on learnings. Meaning SEAM or esSEAM could still be shut-off before the budget is used - it’s important to maximize on effectiveness so the DAO is not shedding SEAM/esSEAM fruitlessly.

Support this moving to a vote to see if there is enough support - and ongoing discussions to continue as the reward approach is further refined.

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@lewis That’s a great idea, and I fully support it! Extending the platform rewards for 2m and utilizing both SEAM and esSEAM rewards can boost our liquidity.

Thanks for the comments and discussion. Also the 75%/25% mix of esSEAM/SEAM respectively seemed to be a welcomed distribution of rewards.

It seams there’s been good discussion above, so this should move to a vote here soon.

Seamless spring! +1

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