Notice This proposal has been formalized into PTIP-85 PTIP-85 Strengthening Protocol Owned Liquidity and is live for voting PoolTogether Governance
TLDR: Proposal to increase the mainnet active trading range POL with $100k USDC (swapped to ETH) and 200k POOL, to be executed by the executive-team and custody returned to treasury.
Please have a read of the proposal specifics and vote on the poll, any other ideas, questions or concerns, please share.
- YES - SUPPORT
- NO - AGAINST
- OTHER - HAVE ANOTHER IDEA
Approximately 4 months ago, PoolTogether deployed its POL on mainnet: PTIP 82 - A foundation for protocol owned liquidity.
The deployed POL liquidity ranges have behaved correctly as expected (more info can be found in this post: Ethereum Mainnet POL - Review. However, the depth of liquidity for trading can still be improved to make sure that traders can have a better experience with less slippage. Therefore it is time to solidify our POL position.
Since our initial POL deployment we have seen an increase in trading volumes: Uniswap Info.
Adding to the active range will support more trading volume growth.
Moreover with the Hyperstructure planned to launch later this year, the protocol needs to strengthen its POL position, as POOL liquidity becomes key infrastructure to the protocol. The PoolTogether Prize Savings Hyperstructure
$100k USDC swapped to ETH and 200k POOL added as liquidity in the active range (.0004 WETH/POOL - .0012 WETH/POOL). POOL that does not balance with the WETH will be added in a second position from current price to .0012 WETH/POOL (active range upper-tick).
With current pricing - $100K USDC would be converted to 60.79 ETH and paired with 96.3K POOL. 103.7k POOL would be added in a second position.
We propose this to be executed by the executive-team and both NFTs would be returned to the timelock for custody.
In the event that price falls below .0005 WETH / POOL between proposal and execution - the USDC should be returned to treasury and only POOL added over the current price at the time.
The proposed change would mean a 166% increase in ETH and 136% increase in POOL compared to our current position in the active range.
Building a stronger foundation for liquidity will prepare us to support the launch of the hyperstructure. Liquidity on other chains will still need to be considered as we get closer to a hyperstructure launch and have a better idea of the go to market plan.
Thanks to @BRONDER and @Lonser - this is a Finance Team post.