POL: ETH/bnUSD & BTC/bnUSD

Proposal Discussion WIP: DFP
#1

PLEASE READ THIS POST FIRST

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

2 Likes
DFP6: Purchase of ETH and BTC through Karma
Swap the DAO funds bnUSD and BALN for BTC
#2

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.

2 Likes
#3

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.

2 Likes
#4

Problem:

  • Getting Liquidity into ETH/bnUSD and BTC/bnUSD liquidity pools

Solution:

  • Use BALN in DAO to acquire POL (Protocol owned liquidity) through Karma (trustless)

Benefits:

  • Improved trader/arbitrage experience for customer
  • Increased volume/fees possible in arbitrage opportunities
  • Increases intrinsic value of BALN
  • DAO earns BALN rewards, which are then locked for 4 years, boosting LP rewards for DAO
  • Most bBALN stakers who are liquidity providers will see their reward boost increase

Concerns:

  • BALN price impact (a guess, as no concerns have been raised in this thread)

Question about POL: edit answered below

  • Does POL earn BALN reward for the DAO?
  • If so, is POL BALN reward 1x (not boosted)?
3 Likes
#5

1.) Yes
2.) The BALN earned by the DAO is locked for 4 years, so it experiences boost like any other user. Can think of the DAO Fund like any other LP

#6

Is the proposal to buy LP tokens worth 25K or just BTC and ETH worth 25k each. And lp through daofund later?

#7

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

#8

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.

1 Like
#9

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?

1 Like
#10

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 ?

2 Likes
#11

Should hopefully be possible, only issue we have found was decomal precision on karma frontend when using ETH and BTC.

1 Like