DIP-63(a) Arrakis Liquidity
GM Hustlers. Thank you for your patience. There are a lot of factors that we have had to work through to get us to a point where we can move the vote forward. But here we are looking to nail down exactly how much $Paper we will deploy to an Arrakis Palm Protocol to help DOPE DAO alleviate the liquidity challenges we face.
Firstly we need to cover off some of the parameters that we are voting on. Because it is so cumbersome to have individual votes on each setting, we have narrowed down the options via discussion on Discord and taking advice from Arrakis on best recommendations. Again the option to ABSTAIN is present if you believe the vote does not represent your position or if you believe certain issues need to be discussed further.
The settings that will be assumed for this vote are as follows:
- The deployment ratio will be 95% Native Asset ($Paper), 5% Base Asset (ETH/OP).
- The settings will be Option 1 as described by Arrakis in their parameter recommendations document (see below). Negligible difference to Option 2 but slightly more support to trading.
- The initial price setting for $Paper will be a figure that is close to the value of $Paper at time of deployment, i.e. when we vote on a Tally Proposal to actually release funds. This issue is somewhat complicated; the lack of liquidity has made the task of determining the actual value of $Paper difficult. The price range over the last while has bounced from a lower range of 0.001 to an upper range around 0.002. However these values are rather misleading anyway, as any large sale of Paper will only yield a low return and any attempt to buy a significant portion will cost the buyer a lot more than the described value. This is why we are trying to fix the liquidity issue right…!! The reality is that the price can be easily manipulated with relatively small buying or selling. But for the purposes of this proposal it will be helpful for us to look at what the eventual start price will mean in terms of a 5% deployment of the base asset, either ETH or possibly OP as a pair in the PALM vault. So for the purposes of this Snapshot I will outline below what those commitments look like at an average start price of 0.0015.
$Paper 37.5 Million: $56,250.00 = ETH/OP - $2697.37 $Paper 50 Million: $75,000.00 = ETH/OP - $3947.37 $Paper 75 Million: $112,000.00 = ETH/OP - $6447.37
The current amount of ETH in the treasury is 54.16 ETH. Current value - $88,945.00. All values USD.
The current amount of OP in the treasury is much, much more… We are awaiting confirmation from Slasher on the position of OPTIMISM with regard to using some of the OP Grant as a potential pair on L2.
With all these figures in mind, you can do the math on what each deployment option will be in terms of commitment of both Native and Base assets.
If you would like to take a look at the discussions and recommendations please follow the link to the Discord Arrakis Liquidity thread here:
https://discordapp.com/channels/882333869007839252/1064519573728141395
You will find all the information here about how Arrakis Palm Protocol is designed to bootstrap liquidity and trend the pairing toward a 50/50 split. The abovementioned document from Arrakis looks like this:
So without further ado. How much $Paper should the DAO deploy to Arrakis Liquidity on both L1 & L2?
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0xd4b6...E0A020 | 103 | 75 M Layer 1 - 37.5 M Layer 2 |
 0xCED1...1840A8 | 94 | 75 M Layer 1 - 37.5 M Layer 2 |
 0x0331...D748D8 | 83 | 75 M Layer 1 - 37.5 M Layer 2 |
 0x728B...B74783 | 70 | 75 M Layer 1 - 37.5 M Layer 2 |
 0x2f68...2417Cc | 56 | 75 M Layer 1 - 37.5 M Layer 2 |
VOTE POWER
Proposal Status
- Fri February 03 2023, 10:36 amVoting Period Starts
- Tue February 07 2023, 10:36 amEnd Voting Period
Current Results
1-75 M Layer 1 - 37.5 M Layer 2
622
2-37.5 M each Layer
83
3-75 M each Layer
22