Hey folks - it’s time for another POL vote to utilize the assets in the DAO Fund. As a reminder, Karma is currently ongoing and we’ll have POL in the BTC/bnUSD and ETH/bnUSD pools once that is completed.

In the mean time, we have sICX and bnUSD that is idle in the fund. Generally speaking, my thought is to keep ~200k in stablecoins to pay for any operational costs (audits, new features, smart contract upgrades, etc.) over the next year, but outside of that we have ~500k bnUSD and ~280k sICX tokens.

I like to take things one step at a time, so want to focus on the sICX tokens we have first, then discuss what to do with the bnUSD in a separate proposal. From a high level, my thought would be to use it to purchase BTC, ETH and/or sICX as those are the primary arbitrage pairs.

For the sICX we currently have, my proposal is to use all 280k tokens and pair it against BALN in order to increase the liquidity for BALN. Two key reasons:

1.) Lower slippage - Currently, a 40k ICX trade for BALN (~10k USD) has a pretty substantial price impact, which isn’t ideal for investors. Let’s compare that to a 10,000 USD trade for a comparable app-token on Fantom (SpookySwap $BOO tokens). The price impact for BALN is over 10x worse. This discourages anybody from taking large positions.

2.) Auto-purchase BALN - the cool part of increasing liquidity of BALN/sICX specifically is that sICX automatically earns ICX staking rewards, therefore the more sICX liquidity in this pool, the more ICX staking rewards are used to market-buy BALN on behalf of liquidity providers.

3.) Lower BALN Inflation - BALN/sICX is currently one of the most heavily incentivized pools, receiving ~675 BALN inflation per day. If the DAO Fund becomes an LP, it earns back a good portion of the daily inflation allocated to this pool. From our other POL initiatives, we’ve already earned back 14,000 BALN that would have been given away for free to LPs.

Given the above explanation, my proposal is as follows:

Deposit 280,000 sICX and the corresponding amount of BALN into the BALN/sICX pool as protocol-owned-liquidity


This is a good idea to use our current ICX.

In regards to the future POL let’s try this with the 500k BNUSD

$85k ICX $85k BNUSD
$85k ETH $85k BNUSD


I like this. The reasoning is sound.

I’ve been thinking about this. What do you think about the idea of focusing on sICX:bnUSD and one of either the BTC or ETH pools, to see how added liquidity influences volume?

For example, we choose to use DAO bnUSD to buy and add:

  • $75k sICX $75k BNUSD
  • $100K BTC $100K BNUSD

Afterwards, we’ll have increased the sICX/bnUSD liquidity by 10% and the BTC/bnUSD liquidity by 200%. This should give us some data about how these changes affected volume compared to the ETH/bnUSD pool. Giving us more information to make decisions in the future.

Here are some numbers from a nineteen-day period (Feb. 6-25)
(To be used as a snapshot of what things looked like recently)
I used trading view on the app to get the initial DATA and assumed volume displayed to by non-bnUSD token.

ICX:Pool / liquidity / slippage on 40000icx / Volume from Feb. 6-25th / Vol per Liq / LP rewards / Liq per Reward% / Vol per Reward%

BnUSD - $1,448,963 - 1.35%
BALN - $692,436 - 2.8% - $0.152m (1.087m BALN) - 0.22 - 30.07% - $23k/1% - $5k/1%
BTC - $50,198 - 28.85%
ETH - $38,326 - 34.43%

BnUSD:Pool / liquidity / slippage on $10000 / Volume from Feb. 6-25th / Vol per Liq / LP rewards / Liq per Reward% / Vol per Reward%

sICX - $1,448,963 - 1.36% - $1.489m (5.319m sICX) - 1.03 - 28.29% - $51k/1% - $53k/1%
BALN - $592,515 - 3.26% - $0.137m (0.977m BALN) - 0.23 - 14.13% - $41k/1% - $9.7k/1%
BTC - $50,198 - 28.39% - $0.032m (1.4 BTC) - 0.64 - 8.8% - $5.7k/1% - $3.6k/1%
ETH - $38,326 - 34.04% - $0.014m (8.93 ETH) - 0.37 - 10.38% - $3.7k/1% - $1.3k/1%


Not a bad idea, see how POL will actually increase our DAO funds. However, what we know for a fact is we will collect daily inflation from ETH and BTC that is currently going to a select few with very small BTC and ETH liquidity providers. So I can see your point and the point of just buying both ETH and BTC to collect those daily inflation BALN back to the DAO. In a way it lowers supply of BALN.

Benny unrelated to this, we need to make sure the Boosted Baln monthly staking rewards percentage gets cut in half since stakers get half of last months (30 day) rewards moving forward. We do not need to unintentionally bait and switch new BALN stakers.

Have a great day everyone!