Summary
This proposal outlines the incentive distribution parameters for USP/USDC concentrated liquidity pool on Merkl.xyz. The goal is to attract liquidity providers (LPs) to the new pool by rewarding participants based on their contribution to both tokens and overall liquidity stability.
Rationale
Launching this campaign with given parameters aligns with the goal of establishing a healthy and liquid USP/USDC market on Uniswap. A balanced incentive structure ensures that participants are rewarded for both token provision and liquidity depth, improving pool stability and reducing volatility around USP’s target price.
| WEIGHT | PARAMETER | DESCRIPTION |
|---|---|---|
| 25% | Token 0 (USP) | Rewards based on the share of USP token provided by LPs. |
| 25% | Token 1 (USDC) | Rewards based on the share of USDC token provided by LPs. |
| 50% | Liquidity Contribution | Rewards proportional to total liquidity contribution and active position within the pool’s incentivized range. |
Suggested Action
Deploy Merkl.xyz Incentive Campaign with the parameters above.