Reduce ACX emissions for WBTC LPs

Proposals Active Proposals
1

Author(s): ACX Emissions Committee (Kevin Chan, David Korpi, Ryan Carman, Dylan O’Reilly, Chase Coleman)
Status: Proposed
Related Discussions: Reduce ACX emissions for ACX LPs, WBTC LPs and wstETH/ACX LPs

Summary

The Across DAO should decrease ACX emissions for Across WBTC LPs by 75%—from 7,200 ACX/day to 1,800 ACX/day. WBTC liquidity is being rewarded at a level that’s out of line with its usage and volume. While the ACX Emissions Committee (AEC) currently manages emissions for ETH, USDC, USDT, and DAI via a transparent framework, this proposal brings WBTC into scope and aligns its emissions with observable demand, just as we do for the other assets.

Motivation

Across should optimally manage ACX emissions across all incentivized liquidity. The AEC adjusts emissions for ETH/USDC/USDT/DAI based on utilization and comparable yield indexes; WBTC was originally excluded due to limited comps. That gap now creates clear inefficiency:

  • Overpayment vs. heavier-usage pools: WBTC currently receives nearly 2× the daily ACX emissions of the USDC pool despite servicing only ~5–10% of USDC’s daily volume.

    image
    image528×260 40.2 KB

    image
    image525×263 44.3 KB

    704×264 11 KB

    (AEC Dune Dashboard)

  • Chronic under-utilization: WBTC utilization has rarely exceeded ~50%, indicating we’re attracting more WBTC LP than needed to support observed demand.

    1107×558 33.1 KB

  • Lower operational burden: WBTC is now an OFT on some chains, making rebalancing less costly in both time and capital, further reducing the need to “pay up” for excess idle liquidity.

Taken together, we are materially overpaying for WBTC liquidity relative to its contribution to the protocol. Re-aligning incentives should improve ACX capital efficiency and free emissions for higher-impact uses (e.g., ETH/USDC, growth initiatives, or Treasury conservation).

Specification & Implementation

  • New Emission Rate: Reduce WBTC LP emissions by 75% from 7,200 ACX/day → 1,800 ACX/day which is more in line with its usage and comparable assets.

  • Scope: Authorize the AEC to bring WBTC under its existing framework (utilization- and market-yield–aware adjustments), with the same permissions and guardrails used for ETH/USDC/USDT/DAI.

  • Execution: If approved, the AEC will update the WBTC emissions parameter and begin monitoring standard KPIs (utilization, depth, fill quality, bridging latency, and rebalancing costs).

Rationale

  • Pay for what we use: Emissions should scale with demand. WBTC’s low share of volume vs. USDC/ETH doesn’t justify outsized rewards.

  • Operational improvements: With WBTC as an OFT on some chains, the platform can maintain healthy routing with less liquidity “padding.”

  • Opportunity cost: Reducing WBTC emissions releases ACX for more productive uses or conservation, improving protocol sustainability.

Downside (Cons)

  • Potential LP outflows in WBTC: The pool size may decline; however, current under-utilization suggests we can support equal or greater volume even if WBTC LP falls by ~50%. If adverse effects appear (e.g., persistent high utilization, worse pricing/latency), the AEC is empowered to make corrective tweaks under its framework.

Monitoring & Review

  • The AEC will review WBTC utilization, routing quality, and volumes 2–4 weeks post-change and report back to the forum with observations and any recommended follow-ups.

Voting

Should the Across DAO reduce the ACX base emission rate for Across WBTC LPs and bring WBTC under the AEC’s remit for ongoing adjustments?
  • Yes: Reduce WBTC LP emissions from 7,200 ACX/day to 1,800 ACX/day and bring WBTC under the AEC’s remit for ongoing adjustments.
  • No: Leave WBTC emissions unchanged at 7,200 ACX/day and keep WBTC outside the AEC’s current scope.
0 voters