There has been good discussion here and elsewhere around regarding POL, with some more advanced strategies here Protocol Owned Liquidity for Balanced
But for now a start quick and simple proposal.
Lets start with some POL to try it out. I don’t know if we are saving for anything in particular but looking at the contents of the DAO fund lets do:
700k bnUSD matched with corresponding BALN.
and
395k sICX matched with corresponding BALN.
This is most of the current DAO holdings but the DAO can and will earn more, so unless we have known spends we would like to save for, lets just go with that. No need to have fancy bonds or fancy constant inflows for now. Lets just put some in and try it out.
If anyone has concerns we can start with lower amounts but it certainly feels better than having it sit around.
I am all for it. I think POL is the best use for the DAO Funds right now because it’s simple to setup, provides a measurable benefit to the platform, and we can always move it around later if needed.
I think we should also consider moving ICX from the Emergency Fund (which was suggested before) to the DAO Fund and using that to add even more to the BALN/sICX pool.
Let’s get things in motion and start putting our DAO Fund to work.
$395k value, actual 289k sICX — I feel like I’m being nit picky, but I just wanted to clarify.
Some concerns. But also excited to try. My “hope” is to find exciting ways to use some of the DAO fund to incentivize new users crossing over from BTP eventually. However, adding POL will increase the rate BALN increases in the DAO fund, so that’s good. There is also the discussion about building the stability fund contract (which might need an amount of sICX/bnUSD to get started). Also, we do not have as pressing of a need for the limited amount of stables the DAO holds.
I think in general other projects concentrate their POL into pairs containing their own token first, in this case I guess some sICX:bnUSD is does not go aggaisnt that because bnUSD is sort of also our own token. And that pair does get the more juicy fees.
For the stable pairs, since its not a large amount, what do you guys think of just turning it all to bnUSD and putting them into other pairs. I don’t dislike your exact breakdown in particular just might be simpler
Overall I like the direction and will get a community dev working on it once he finishes the stability fund contract.
Having said that, what should be the balance between the stability fund and POL? I’d like to use some sICX for the stability fund. Also don’t forget we have ~742k sICX in the Emergency Reserve Fund that we should move over at some point (at least most of it)
If as expected, the stability fund keeps turning sICX to bnUSD, we can then funnel it into BALN/bnUSD as POL.
So in that sense we really are deciding between how much BALN:sICX we want versus stability.
POL generates better direct returns for the DAO though, and also allows us to ultilise more BALN on hand without selling it. for every sICX devoted to stability, we can have twice that amount in dollar terms gaining value in BALN/sICX or sICX/bnUSD. So it really depends on the effectiveness of the stability fund. I am personally not that big a fan of the stability fund.
On the subject of implementation, without giving a timeframe, what is the scale of the ‘heaviness’ of the implementation for simple POL from the DAO fund.
Fair points about the stability fund, I’m not 100% convinced either but do think having the tool available and testing it out would be good.
As for difficulty levels, true POL would likely be a bit more difficult than the stability fund, but definitely doable. I would say about 4-6 weeks depending on testing.
A separate contract would be developed to accept tokens from the DAO Fund, then have some external methods that can be called to supply liquidity, stake LP tokens, claim BALN, etc.
Sorry - just seeing this @Uglyrage! Side-note - going forward if you drop a link to your forum post in the Discord I’ll make sure to check it out.
Been discussing POL with Karma, and since Balanced has a solid DAO Fund it makes the most sense to use our own funding for POL rather than paying the ~3.3% fee to liquidity providers / Karma (depends on how u think about it). Karma would be good for a BTC/bnUSD pair though, which is being considered.
