HIP 14 - Administrative Update for Our Liquidity Bootstrapping Program

Summary

HIP 14 proposes to continue Hifi’s successful Liquidity Bootstrapping Program by authorizing the redeployment of any HIFI tokens that may be returned to the DAO through HIP 6 refunds. The original program has secured over $13.5M in protocol liquidity, and this proposal ensures we can maintain this momentum by reusing returned tokens for the same purpose, with the same terms as HIP 6.

Motivation

As HIP 6 approaches its one-year anniversary, participants will have the option to request refunds of their USDC in exchange for returning their HIFI tokens. Rather than letting these potentially returned tokens sit idle, we should continue using them for their original intended purpose - bootstrapping protocol liquidity. This approach maintains the program’s momentum without requiring any new token emissions.

Details

• Approach: Continue the successful liquidity bootstrapping strategy established in HIP 6 using any returned HIFI tokens.
• Ownership: As with HIP 6, all liquidity acquired through this program will be completely owned by HIFI token holders.
• Terms: All Terms are Identical to HIP 6:
  • One-year term for each transaction
  • Full refund option available after one year
  • Refunds denominated in USDC or hUSDC tokens
• Participant Qualifications:
  • KYC compliance required
  • US residents must be accredited investors
  • Minimum transaction size of 100K USDC or USD
  • Only USD and USDC accepted

References

• HIP 6 - Liquidity Bootstraping Program
• HIP 6 - Additional Details
• HIP 6 - Governance Proposal

Benefits

1. Authorize the continued use of any returned HIFI tokens for liquidity bootstrapping
2. Maintain the same careful and strategic approach to liquidity management
3. Ensure protocol-owned liquidity remains a priority for Hifi’s growth.

Action Items

Authorize Hifi Labs to continue administering the Liquidity Bootstrapping Program using any HIFI tokens that may potentially be returned through HIP 6 refunds.

Voting

Upon majority approval, Hifi Labs will have authorization to redeploy any returned HIFI tokens through the continuation of the Liquidity Bootstrapping Program. If the majority vote disapproves, returned tokens will remain in the DAO treasury until further action is approved.