SIP-294: Redirect inflation from Curve sUSD pool reward to Curve synth incentives

Simple Summary

Increase the 6,000 SNX inflation emission entry, which is directly sent to Curve's sUSD pool, to 10,000 SNX per week and redirect the inflation to the vault on 0x579b66d0A7C48eEe63B3BD2bcA17bf0Fa0F0787b controlled by the Treasury Council. This will incentivize sETH, sBTC, and sUSD Curve pools to promote Atomic Swap adoption. The Treasury Council is mandated to spend this 10,000 SNX each week.

Motivation

Currently, 6,000 SNX is minted per week as a reward for depositing into the sUSD curve pool. This is a direct incentive and is not as capital efficient as incentivizing curve voters on convex or similar protocols. As of now, the protocol could increase its capital efficiency by incentivizing curve voters on convex or similar protocols instead.

Furthermore, Atomic Swaps have just been fine-tuned and are beginning to experience volume flow through Curve, but the current limiting factor is the liquidity for synths on mainnet. To increase liquidity, the Treasury Council will have discretion in which curve synth pools to allocate this 10,000 SNX per week to the appropriate curve synth pools. The Treasury Council is mandated to spend this 10,000 SNX each week.

Technical Specification

The supply schedule for inflation will be adjusted to replace the 6,000 SNX weekly entry and instead be replaced by a 10,000 SNX weekly entry directed to a wallet controlled by the Treasury Council

Copyright

Copyright and related rights waived via CC0.