[PIP #17] - Strategic Adjustments to Liquidity Rewards and Treasury Utilization

Penpie 4. Penpie Improvement Proposal
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Abstract

This proposal seeks to adjust Penpie’s revenue mechanisms and strategies by focusing on two key areas: (1) redistributing PENDLE liquidity mining rewards across chains to enhance operational efficiency and reward allocation, and (2) authorizing the strategic investment of treasury-held mPENDLE assets to optimize returns. These adjustments aim to streamline Penpie’s operations, ensure sustainable growth, and align with long-term goals, while adhering to the compensation principles outlined in PIP #15.

Adjustment of PENDLE Liquidity Mining Rewards Across Chains

Motivation

To maximize rewards efficiency and enhance the ARB chain as the primary focus for Penpie’s liquidity mining rewards, this proposal advocates for gradually reducing emissions on other chains and reallocating them to the ARB chain. This transition will bolster liquidity on ARB while simplifying the reward structure, driving growth and engagement within Penpie’s ecosystem.

Key Changes:

  • Liquidity mining rewards for mPENDLE pools on all chains other than the ARB chain will be reduced by 20% monthly over five months.
  • The total reduced emissions will be entirely reallocated to the ARB chain to support mPENDLE Stability Vault and mPENDLE Stake pools.

Authorization for Treasury mPENDLE Asset Investment

Motivation

Penpie’s treasury holds substantial mPENDLE assets that can be strategically allocated to generate returns and support the stability of the mPENDLE/PENDLE peg. This proposal authorizes the strategic allocation of mPENDLE assets into high-impact pools and partnerships, including those related to bribing emissions (PNP) and official collaborations.

Key Changes:

  • All revenues generated from these investments will be fully utilized to repurchase mPENDLE, which will then be reinvested for compounding returns. This ensures a continuous cycle of value creation and treasury growth.
  • Future discussions will determine additional strategies to increase vePENDLE holdings once the PEG improves.

Specification

  1. Gradually reallocate all liquidity mining rewards for mPENDLE pools from all chains other than Arbitrum to the Arbitrum chain over five months. This reallocation will support the mPENDLE Stability Vault and mPENDLE Stake pools.

  2. Authorize the strategic allocation of treasury mPENDLE assets for investments and reinvestment into mPENDLE repurchases.