Ampleforth

Given the positive feedback from the Forth DAO community to the discussion on the Ampleforth Forum regarding the Forth DAO seeding a SPOT-AMPL pool on ElasticSwap, we want to move this to a Snapshot vote.

https://forum.ampleforth.org/t/forthdao-spot-ampl-pool-on-elasticswap/591

Summary:

This is a proposal for the Forth DAO to seed liquidity for a SPOT-AMPL pool on ElasticSwap.

Abstract:

With the launch of SPOT, the Forth DAO would mint SPOT using AMPL in the treasury, pair that SPOT with additional AMPL in the treasury, and seed an SPOT-AMPL pool on ElasticSwap. The amount to be seeded is subject to any limitations on the initial supply of SPOT, but the DAO will target an initial pool $1M deep ($500k SPOT and $500k AMPL). The deeper the pool the more efficient the pair will trade.

This proposal allows for the Forth DAO to have that additional SPOT liquidity while maintaining its AMPL exposure, allowing the treasury to diversify its treasury and grow the ecosystem, while also increasing the total capital the DAO treasury controls. Furthermore, the Forth DAO will generate 25 bps in fees for the liquidity they are providing, so this will provide a nice stream of revenue for the DAO.

Motivation:

ElasticSwap is the first AMM that specializes in dealing with elastic-supply tokens, getting rid of impermanent loss as a result of the rebase. ElasticSwap is a partner of the Ampleforth ecosystem and has been operating pools on both Avalanche and Mainnet since April/May 2022, and is therefore a logical starting place for the initial pool.

The Forth DAO currently has FORTH, AMPL, and LP positions from various pools in the treasury. It is logical that the DAO mint SPOT as a way to diversify the treasury and deepen the amount of available SPOT but rather than just holding that SPOT in the treasury, the DAO could use that SPOT and some additional AMPL to bring liquidity to SPOT, provide a deep pool of initial liquidity, and put the assets to work via an LP position.

ElasticSwap is committed to supporting the Ampleforth ecosystem and will integrate SPOT into the frontend from day 1.