[Merkl] UniswapV4 BOLD-USDC incentivization proposal

Initiatives
1

About the Protocol

Merkl is an onchain incentive distribution platform that enables protocols, wallets, chains, and DAOs to easily launch and manage customized reward campaigns for DeFi activities.

Proposal Overview

This initiative will incentivize a BOLD/USDC liquidity pool on Uniswap v4:

Usage of the funds

100% of the funds will be used as incentives on the pool:

  • 75% for fees

  • 20% for BOLD liquidity

  • 5% for USDC liquidity

Merkl takes a 3% fee for this service.

Impact for BOLD

The targeted incentives drive fresh BOLD demand, strengthen the peg, and reduce slippage by funneling more rewards to it compared to USDC. They also let BOLD tap directly into Uniswap’s deep liquidity and volume.

Threshold & Target

There is no minimum amount of BOLD required for this proposal to be delivered.
However, if a week’s rewards are below 100 BOLD, they won’t create a campaign and will accumulate for the next epoch.

Impact Measurement, Tracking and Key Metrics

  • Stronger peg

  • Lower redemption volume

  • Higher liquidity and trading volume

  • Reduced slippage

Claiming is done on the Merkl app: https://app.merkl.xyz/

Connect your wallet and then go to ‘Dashboard’

Practical Information

Receiving address: 0xB42448852A1BFc99d66ed53C65e2B49cF954f615

4 Likes
2

Great to see a Uniswap V4 proposal, thanks @sogipec!

Can you explain this more?

Usage of the funds

100% of the funds will be used as incentives on the pool:

  • 75% for fees

  • 20% for BOLD liquidity

  • 5% for USDC liquidity

It may be helpful to provide an illustrative example.

3

Details on how parameters for UniV4 campaigns work on Merkl can be found here.

75% of the incentive budget will be split between LPs based on their contribution to the overall liquidity of the pool

20% based on the in range BOLD

5% based on the in range USDC liquidity

2 Likes
4

Thank you! What is the rationale for having a higher weight for in-range BOLD liquidity vs USDC?

5

People are incentivized for providing skewed liquidity positions with more BOLD than USDC so:

  • lower slippage for BOLD acquisitions from USDC
  • more BOLD TVL incentivized
1 Like
6

Seems reasonable, but given that BOLD has limited integrations with the rest of DeFi and no CEX listings yet, strong swap liquidity out seems important. No strong opinion though. Thanks again for bringing this initiative, will be voting for it!

1 Like