Alchemix Finance

Proposal Summary

(1) Migrate ALCX/ETH POL to 80/20 Balancer/ETH pool - Utilize the full ETH from the current POL, add ALCX from the treasury to create the 80/20 position (2) Migrate ALCX/ETH incentives to veAura Bribes - 50% once gauge is secured, the remaining 50% two weeks later

Context

A recent announcement from the Alchemix team outlines the plans to revamp ALCX tokenomics by turning it into a revenue generating asset through its ability to influence gauges, earn from protocol revenue, and generate FLUX. For more details see this post.

As a precursor to the functionality of veALCX, the DAO will need to transition its liquidity from the current Sushi 50/50 ALCX/ETH pool to a new Balancer 80/20 ALCX/ETH Pool. This will mark the first step on the path towards a revenue-generating ALCX. Much like how the Curve ecosystem emits CRV, Balancer emits BAL to liquidity providers of its pools. The amounts of the emissions are determined by gauge votes using locked BAL (veBAL), or locked Aura (vlAURA). After creating this 80/20 Balancer pool we will be able to apply for a Balancer gauge, and all indications seem to suggest that we should have no problem passing a request for this. To this end, this proposal is being put forward, and centers around two main ideas:

(1) Approval to create the 80/20 Balancer Pool, and to migrate both our current ALCX protocol-owned liquidity, and the incentives on that pool. (2) Approval to execute a strategic acquisition of AURA for our future gauge.

Part 1 - Migration of ALCX Liquidity and Incentives to Balancer

Given the fact that the DAO code is ready for audit, and that the specs have been finalized (barring anything unforeseen in audits), the Biz-Gov subDAO believe now is a good time to begin this transition. The goal at first should be to successfully incentivize as much liquidity as possible in our existing pool to migrate to the new Balancer pool. In order to do so we should migrate all of the current incentives on our Sushi pool to the Balancer pool. This should be done at a gradual predictable rate so that liquidity providers in the current ALCX/ETH pool have ample time to become informed, and to migrate their funds. Currently liquidity providers in the Sushi pool are earning 20% of weekly ALCX emissions. The quantity of total emissions, as well as the weight of emissions that incentivize each pool in our ecosystem, can be found here.

The Biz-Gov subDAO advocates a complete migration of 100% of POL, (protocol-owned liquidity) in the form of ALCX/ETH ($1.07m) currently residing in Sushiswap, to the future Balancer pool, at the discretion of the Biz-Gov subDAO once the pool has been created. The Biz-Gov subDAO also advocates migrating all current ALCX incentives to the Balancer pool, either in the form of direct incentives, or as bribes to take advantage of the current bribe multiplier that exists on Aura. This Biz-Gov subDAO advocates a gradual transition of these incentives over the course of 2 weeks; migrating 50% after the gauge is secured, and the rest 2 weeks later.

Voting

Voting is single-choice.

1. Yes - Migrate POL and incentives
2. No - Discuss further
3. Abstain