Proposal: Seeding Liquidity to LST tokens leveraging Uniswap V4 Hook.

[PaulElisha]

Description

• This proposal is to create a hook contract that leverages uniswap v4 to mint points specifically to LPs that seed liquidity to the bifrost LST tokens.
• Whitelist some bifrost LST tokens in the contract that LPs are meant to seed liquidity into.
• The aim of this project is part of the strategic approach to incentivise liquidity provisioning.

Bounty track

• DeFi

[zxstim]

Can you describe roughly your hook mechanism? plus I think it would be good to support custom incentive rewards with custom rules as well. For example, we have a campaign coming up DeFi Singularity, say we have another one after, we would like a custom hook mechanism to incentivize LPs (of course with different rules).

[PaulElisha]

The Uniswap V4 has a list of hooks to plugin custom logic into the core Uniswap protocol. I am using the afterSwap and afterAddLiquidity hooks as a mechanism to make this possible. For traders, the custom logic is for users to get 20% of LST tokens spent as points after a swap. The same applies to LPs, they get 1:1 points per LST tokens deposited.

Now, if you want to create custom incentives, we can have a manager to always create and modify campaigns with the incentives attached where users submit the incentives id to benefit from the points.

[zxstim]

Alright. Let's see with your first submission.

[PaulElisha]

This is the repository file for the project.

https://github.com/PaulElisha/bifrost-lst-points-hook

[zxstim]

awesome. can you add scripts and deploy so i can try?

[zxstim]

Make sure you follow this to claim rewards
https://github.com/bifrost-io/mono/tree/main/builder-program#bounty-lifecycle