VSP#8: Integration with Goat protocol for liquidity bootstrapping

Summary:
Currently, liquidity on Virtuwap is deposited directly through app.virtuswap.io by individual liquidity providers. While some pools on VirtuSwap offer sizable yields, accumulation of liquidity is limited due to limited familiarity of DeFi community with VirtuSwap.

This proposal aims to integrate VirtuSwap with Goat – an up-and-coming yield aggregator on the Arbitrum chain. Goat will construct vaults that will attract liquidity by its community members, which will be deposited into VirtuSwap pools. VirtuSwap will incentivize the bootstrapping of liquidity through Goat via special designated VRSW rewards. We hope that integration with Goat will gradually increase VirtuSwap TVL on Arbitrum.

Motivation:

We hope that integration with Goat will gradually increase VirtuSwap TVL on Arbitrum, by exposing VirtuSwap liquidity rewards to Goat community.

Specifications:
If the proposal is approved, the integration with Goat should be completed within a week from approval.
VirtuSwap will provide initial special rewards to 2-3 Goat vaults depositing funds into designated VirtuSwap pools for roughly 3 weeks, for a total of roughly 300,000 VRSW. The continuation of rewards and their allocation to pools in the future will depend on the success of liquidity bootstrapping. The extra rewards to Goat protocol vaults will not exceed 600,000 VRSW.

Sources:
Goat protocol: Goat Protocol