Arbitrum LTIPP Incentive Matching

Now I get what you meant!

I’m assuming that Base’s higher fees are mostly driven by exogenous factors, not by difference in LP behavior, as Base has a much more active memecoin trading, which are more likely to be traded in higher fee-tier pools. I doubt that it’s possible to recreate such a memecoin ecosystem or Arbitrum, but liquidity incentives could attract higher fees per unit of volume in two ways:
a) by incentivizing longer-tail pools
b) by incentivizing higher fee-tier pools for short-tails assets

From these options, the second looks better from the LP perspective, as it’s lower risk.

While I know that Gauntlet has done lot of work on selecting the pairs to incentivize, I’m not sure they have equally thoroughly investigated the tradeoffs of incentivizing different fee tiers. Nudging them to prefer higher fee-tier pools sounds be something the DAO could do, but seems like it would conflict with the volume maximization objective. So I agree with you that it could be out of scope for this program, unfortunately. What do others think?

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