Lido DAO

The following is an extension of the previously posted proposal to allocate assets worth up to 600 ETH from the Lido treasury to develop the Univ3 wstETH<>WETH pair. In February 2022, the new Compound price oracles are expected to be released, and those are going to use Univ3 as an anchor. This means Compound listing will require wstETH liquidity on Univ3 to be deep enough to provide good price data. While waiting for proper Univ3 wstETH<>WETH pair strategy to be developed, the Lido DAO can allocate enough liquidity for this pair from the protocol treasury directly to Univ3. The liquidity is to be deposited to an interval that captures about a 20% drop in price and a potential 5% price rise (max drop in peg stETH had over the years was 5%). This would allow getting enough liquidity in the UniV3 pool for the Compound to use the pool’s price data in the wstETH listing.