Liquidity provision : Reimbursement of the DAO
Author: Maxicrouton#1596 GotchiID: 13306 Quorum requirement: 20% (9M) Vote duration: 7 days XP Reward: 20 XP for each Aavegotchi in the voter’s wallet Discourse Thread: https://dao.aavegotchi.com/t/where-should-25-lp-allocation-from-curve-go/4739/3
Hello Frens!
Little summary of where we are in the 7M5$ liquidity allocation from the curve closing.
What has been used :
- QUICKSWAP LM program : 160 000 GHST (took from DAO wallet)
- BALANCER POOL : 2 580 000 GHST and 926022 USDC (took from DAO wallet. https://polygonscan.com/tx/0xae27fed433feac9a4eb8a73871fbf307de107255fdb0d0fa289c81d065adb8a6)
These funds (about 5M$) used prior to the curve closing came from the DAO wallet, which we took roughly 4M$ worth of GHST and 1M$ DAI. So we need to reimburse the DAO wallet with these 5M$ borrowed, we have two options :
-
Reimburse all the funds (5M$) in DAI.
-
Reimburse the 4M$ worth of GHST in GHST, so it means using DAI to buyback GHST.
If we choose to reimburse in GHST, the schedule of swaps to pay back the DAO could be 6 months. (With constant swaps over the period)
Not having a too long timeline will help to have a average price closer to the price when we borrowed the funds.
Also, we need to decide what is the amount to be reimbursed to the DAO, we have 4 options :
-
Reimburse the DAO at the current GHST value (Would be a fixed 3M$ purchase of GHST)
-
Reimburse the DAO at the added liquidity GHST value (Would be a fixed 4M$ purchase of GHST)
-
1 GHST is 1 GHST, trying to reimburse the 2,740,000 GHST borrowed with 5M$ DAI (Would be at maximum 5M$ purchase of GHST, can be lower if we suceed to get enought GHST to reimburse the DAO with less than 5M$)
-
1 GHST is 1 GHST, trying to reimburse the 2,740,000 GHST borrowed with the 7M5$ DAI from the liquidity wallet, if we suceed to get enought GHST, take 50% of the rest of the DAI and swap it to GHST and pool it in a 50-50% Quickswap Gamma pool (make the proposal “Adding liquidity to Quickswap” obsolete)
Technical details for the DAO directors : Deploy a new “swap contract” (see AGIP 69) with the Liquidity wallet as owner. Swap 3/4/5/7.5M$ DAI into USDC. (can be done in little chunks) Send 3/4/5/7.5M$ USDC to the contract. (can be done in little chunks) Send GHST to the Treasury Wallet.
Note : The 6 months swaps timeline specified can be changed to any timeline if the DAO is willing to.
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0xDd56...1eAC63 | 3.294M | 1.5% for Reimburse only in DAI, 5.9% for Reimburse in GHST (option 1), 0.8% for Reimburse in GHST (option 2), 75.6% for Reimburse in GHST (option 3), 16.2% for Reimburse in GHST (option 4) |
 0x5119...aecA6C | 2.276M | 1.5% for Reimburse only in DAI, 5.9% for Reimburse in GHST (option 1), 0.8% for Reimburse in GHST (option 2), 75.6% for Reimburse in GHST (option 3), 16.2% for Reimburse in GHST (option 4) |
 0xdCf4...6EAbc0 | 474,656 | 100% for Reimburse in GHST (option 1) |
 0xd04e...8CC21b | 229,780 | 100% for Reimburse in GHST (option 3) |
 0x2e21...CaED32 | 214,057 | 100% for Reimburse in GHST (option 1) |
VOTE POWER
Proposal Status
- Mon March 27 2023, 09:11 amVoting Period Starts
- Mon April 03 2023, 09:11 amEnd Voting Period
Current Results
1-Reimburse in GHST (option 3)
8.381M
2-Reimburse in GHST (option 1)
2.433M
3-Reimburse in GHST (option 4)
1.621M