SCCP-23: Reduce SNX rewards for sETH/ETH Uniswap pool
Decrease SNX incentives for sETH/ETH Uniswap pool by half to 4,000 SNX per week
8,000 SNX per week from inflation rewards are given to the sETH/ETH pool which incentivises liquidity provision to the sETH/ETH pair.
Since the last reduction of rewards, the peg has remain stable and sETH exposure to debt pool has gone down to around 30% of outstanding synths but is still relatively high. Currently we observed that gradual reduction of incentives (in sETH/ETH, Curve. iETH) has no adverse impact and we should continue to reduce the overall total of SNX rewards given for various incentives.
Also Aave has introduced a new utility for sETH/ETH liquidity providers. They are now able to stake their LP tokens as collateral to borrow stable coins, allowing them to leverage on their position. With the added utility, I believe the value proposition of being a sETH/ETH LP will remain strong even with the reduction in SNX incentives.
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