Introducing Balancer’s 80/20BPT Launchpad
Diving into [BIP-146] and incentivizing 8020 BPT Staking (ve8020)
One of the main differences between Balancer’s veTokenomics and the initial model proposed by Curve is that in the Balancer model, BAL/WETH 80/20 BPT is locked instead of only BAL. Locking BAL itself would take the token out of circulation while locking the BPT of an 80/20 pool does the opposite. The BAL tokens remain in the pool, and the locking allows the creation of onchain liquidity. Moreover, liquidity creation happens without spending costly emissions on BAL liquidity incentives.
With the unanimous approval of BIP146, any protocol can get support to leverage this same infrastructure for its governance token.
Program Outline
This program is intended to support all systems which involve the locking of 80/20 BPT. ve80/20 is one such system, and it’s a convenient shorthand to use, but this program is not limited only to vote-escrowed systems.
When assessing projects for eligibility, the Balancer governance will consider the following criteria:
- Project track record — has it been around awhile, is it likely to exist going forward, does it have an active community/user base, etc.
- Circulating market cap and trading activity — is there a reasonable likelihood for this ve80/20 to contribute significant protocol revenue for Balancer?
- BAL incentives should go to ve80/20 lockers only, and the lock should have a minimum duration of 16 weeks.
The program consists of 3 milestones. The milestones are given in relation to the value of BAL to future-proof this program against changes in market conditions.
The initial criterion is that the project is enabled to join the program by the Balancer governance.
Upon a successful Balancer governance vote, the project would immediately be eligible for a grant of 25k BAL. If all milestones are met, the cumulative grant is 250,000 BAL.
Please note that only TVL and revenue from locked liquidity will be counted toward the milestones.
Milestones:
25k BAL
- TVL exceeds the value of 25k BAL by 30x
- Lifetime total revenue earned exceeds ⅓ the value of 25k BAL
50K BAL
- TVL exceeds the value of 50k BAL by 30x
- Lifetime total revenue earned exceeds the value of 50k BAL
50k BAL
- TVL exceeds the value of 50k BAL by 100x
- Lifetime total revenue earned exceeds the value of 50k BAL by 4x
100k BAL
- TVL exceeds the value of 100k BAL by 200x
- Lifetime total revenue earned exceeds the value of 100k BAL by 4x
If your project is looking to apply for the launchpad, complete the following form to get in touch with our team.
This article is for informational and educational purposes only. It should not be construed as investment or trading advice or a solicitation or recommendation to buy, sell, or hold any digital assets. Transactions on the blockchain are speculative. Carefully consider and accept all risks before taking action.
