Problem:
We have a lot of Turbos available but very little liquidity in the pools that back them, see: Opium Finance . Furthermore many of the Turbo staking pools have been loss making. For instance these two flagship Turbo staking pools:
These turbo pools obviously need time to prove themselves, but the negative returns accumulated so far likely dissuade people from investing in them. Which in turn results in very little availability of Turbos on the supply side.
This is a pity as Turbos are a great addition and could really help propel the Opium protocol.
Proposal:
Provide a reward in Opium for providing liquidity in Turbo pools. I’d suggest a reward of around 20% APR, or a fixed amount per pool to be divided among investors (which would mean lower APR with more pool investors and higher APR with less investors, hence the market would set the APR). The exact level is something that would need to be discussed.
For simplicity purpose I’d suggest one reward program that includes all liquidity provided in all pools (or a selection of pools that we want to promote).
As for the duration, 6 months seems like good choice, as investing in these pools is a longer term game, and it gives some time for the Turbo pools to prove themselves. Upon expiry the program can always be renewed.