PIP-17: Authorize JPEG'd DAO to Interact with Liquity Smart Contract
ABSTRACT JPEG’d treasury is currently idle with WETH and stables that can be farmed to generate yields, it is possible to interact with Liquity’s immutable contracts to generate returns in a low-risk manner
BACKGROUND The aim is to obtain more treasury assets at bargain price with minimal risks. The best and cleanest indicator of a bottom is liquidation.
In the last correction, it was possible to automatically buy ETH in the stability pool @$850 when the market price was @$875 thanks to liquidation events.
JPEG’d as a DAO can utilize Liquity’s stability pool to “fish” for ETH at a discount in this manner, given generous safety margins.
PROPOSAL Deposit roughly 33%-50% of JPEG’d WETH into Liquity’s smart contract to mint LUSD to farm LQTY while fishing for ETH liquidations via Stability Pool with a health factor between 1.7-2.5
- If health factor is above 2.5, mint more LUSD to deposit into Stability Pool
- If HF is below 2.0, return some LUSD and WETH to restore HF to 2.5+
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0x9c50...a5dAC5 | 969.501M | Support |
 0x88a6...1E7FC3 | 415.934M | Support |
 0x4B28...5Cd328 | 318.717M | Support |
 0x4702...E247dC | 310M | Support |
 0xE470...dAC46D | 305.027M | Support |
VOTE POWER
Proposal Status
- Fri October 07 2022, 09:33 pmVoting Period Starts
- Mon October 10 2022, 09:33 pmEnd Voting Period
Current Results
1-Support
2.469B