# Strudel Liquidity Incentive Revision (SLIR)
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Uniswap v3 is upon us and we have been looking at the functionalities of the farm and have now started to write our new farming contracts. In the meantime, we feel like it's time to review once again our incentive schedule to best align them to the goals of the Strudel protocol.
## The Current Setup
The current farming setup is centered around vBTC:ETH UNI-V2 LP and TRDL:ETH SLP pools which currently receive 80% of the farming rewards. Additionally, 20% rewards are supporting the oneVBTC:ETH pool. With the addition of vBCH to the ecosystem and the new pools, we feel like we need to create a centralized hub for Strudel liquidity.
As we continue to bridge new assets, we run into the issue of diluting the rewards and spreading the available liquidity. Furthermore, we find there's not enough connection between the $TRDL liquidity and the rest of the pools. Therefore a solution is required.
## SLIR: A Phased Approach
The farming contracts for Uniswap v3 will require some time to get to our production standards since they are a new paradigm in the space. We have recently bridged vBCH and want to start creating a market right away for it to maintain a healthy peg. With that in mind, we have created a [vBCH:ETH pool ](https://v2.info.uniswap.org/pair/0x58645aa09d39fcfba8c5708a09258fc8a5d823f2)and yield 10% of the $TRDL rewards.
### The Mare Ibrium Fund
A few months ago Strudel team up to create the Mare Ibrium (MI) Fund in cooperation with [The Adventure Token (TWA)](https://www.adventuretoken.com/). It included the UniV2 LPs for TRDL and vBTC, but at the time we found it too gas-intensive to bring into production. In the meantime, both the TWA and Strudel team have evolved our product offerings to be more efficient and hold the new Strudel protocol tokens.
We have modified the [MI Fund](https://pools.balancer.exchange/#/pool/0xde5921f03ba2ec1a9efbeb6957273b5414193a3b/) to hold the following tokens in equal allocations (~16.67%):
- TWA/ETH LP
With this in mind, we will allocate 40% of the $TRDL rewards to this LP since it is the most capital-efficient way to incentivize the Strudel liquidity. The intention of this is to have the total value locked support itself by arbitrage and simplify the number of pools. Once we complete the new v3 farms we will move the liquidity incentives from v2 into Uniswap v3 pools for $TRDL, vBCH, and vBTC. Below you can see the proposed settings for the two phases:
SLIR allocation summary
| Pool| Current Yield | Phase 1.1| Phase 2.0|
| -------- | -------- | -------- |---------|
|TRDL:ETH SLP | 40% | 30% |0%
|vBTC:ETH UniV2 | 40% | 20% |0%
|TRDL:oneVBTC SLP | 20% | 0% |0%
|vBCH:ETH UniV2 | 0% | 10% |0%
|M.I. Fund BPT | 0% | 40% |50%
|vBTC:wBTC UniV3 | 0% | 0% |20%
|vBCH:renBCH UniV3 | 0% | 0% |20%
|$TRDL:ETH UniV3 | 0% | 0% |10%
We will introduce Phase 1.1 incentives in the next 48hrs so we invite our users to add liquidity to the desired pools. We think this phased approach brings a needed revision to yield incentives that will help self-support the growth of the protocol and simplify liquidity provision for investors. Please come to the [Telegram group](https://t.me/StrudelFinanceOfficial) to learn more and ask any questions you may have.
We hope to pass the decision of the allowance of rewards from the farm to gTRDL holders once we achieve a steady state product with the pegged assets. We feel like we're on the doorstep of this milestone which we have worked so hard for.