sudoswap DAO

The first proposal did not pass as we did not hit quorum. Make sure to delegate your SUDO to yourself or someone BEFORE voting starts (at https://www.tally.xyz/gov/sudoswap) since your voting power will not count. The past vote was rejected, mainly due to concerns around SUDO/ETH liquidity.

As mentioned by recizk.eth: “I have some doubts about using the treasury as buy side in the LP. If the people that got the airdrop dump into it we would buy back a token we gave out for free. In general, for DAOs it’s better to spend token equity (that they have a lot and can print more if needed) than hard money (ETH in treasury).”

Therefore, I believe that it’s better to establish POL after price stabilizes. If we establish POL at launch, the DAO risks providing exit liquidity for large holders & airdroppers. Incentivizing LPs will externalize this risk. There will also be natural demand to LP on UniV3 for SUDO given it’s likely to attract volume.

We all know Sudoswap is an amazing product that just needs more eyeballs, education, and incentivization. Once there is more interest around the protocol, we should expect more NFT volume data, which we can then use to determine what type of NFT liquidity we should incentivize in the coming months.

Given the above points, I propose a 3 month liquidity mining program for a UNIv2 SUDO-ETH LP. Targeting 30% APR at $5M TVL, we’d need to emit $375,000 worth of $SUDO over 3 months. If we estimate a price of $2 per SUDO, that is 187,500 SUDO tokens to be distributed to LPs over the 3 month period (1.25% of treasury). $LOOKS has ~$7M liquidity on Uniswap, so targeting $5M seems reasonable. The DAO can then agree on a longer-term solution for POL.

By voting “For” on this proposal, SUDO holders are voting to make $SUDO transferable and support a 3 month liquidity mining program for UniV2.

By voting “Against,” you do not support this proposal.