Given my logic in the above post, I’d like to propose using BALN to acquire POL for ETH/bnUSD and BTC/bnUSD liquidity pools. I’d like to target these pools specifically because they are more costly to get community-owned liquidity.
It’s tougher to get people to LP for token/stablecoin rather than token/token because the assets typically have reverse correlation making it difficult to forecast the impact on your portfolio. Personally, I’d be happy to LP for an ETH/BTC pool for minimal incentives compared to these other two pools.
Using Karma, we need to decide on the following items for each pool:
The reward token
Amount (in $) of POL to acquire
How long the bonds should be on the market
Max Discount
Here is my initial proposal, open to discussion.
ETH
Reward Token = BALN
Amount of rewards = $25,000
Auction Period = 1 month
Max Discount = 10%
BTC
Reward Token = BALN
Amount of rewards = $25,000
Auction Period = 1 month
Max Discount = 10%
EDIT: Updated to 25k each per @arch suggestion. Updated to be ETH-only and BTC-only per @Andell 's suggestion
Sounds good to me. Perhaps 25k each to make it an even 50k/m.
That said does anyone else have thoughts on making it more agressive for an initial boost to those pools.
Flat 50 sounds good - the reason we can’t go that hard is because of the slippage of the BALN pools. If there was more liquidity we could do more at once. Something to consider for future POL decisions.
Good question. I initially thought we should do LP tokens to save the extra vote step, but we can get more liquidity here by pairing with our own bnUSD and outright purchasing the BTC and ETH.
I could go either way, but if nobody shares an opinion I’d propose buying just the BTC and ETH, not the LP tokens
Yeah, i think buying only BTC and ETH is good for a initial purchase, but if we start doing monthly with karma it might be better to do LP tokens.
Edit: Just a additional note here. If we buy assets directly we will need a additional vote to actually invest the assets. While if we get LP tokens any user can stake those tokens in the daofund.
This looks really good, for some reason I thought we had already voted on this. Are we waiting for feedback/coordination from Karma before getting it to a vote?
Yep that’s correct. Karma team members also contribute to Omm so there has been some delay, but testing resumed just yesterday. Hopefully we can get a vote going this week. Any thoughts @Andell ?