Hello everyone,
Here are some news on Paladin’s Protocol Owned Liquidity Strategy.
Context:
Paladin has currently spent 413,000 PAL on Quests, since June 2022. This was done in accordance with PGP-13. Unfortunately we have spend way more than the 204,000 PAL initially allocated. Due to extreme market conditions, we haven’t been monitoring properly the budget allocated to POL vote incentives. This doubled by the fact we duplicated the strategy on Balancer, which has significantly grown its cost.
However it is important to highlight that these expenses were matched by strategic asset farming. We have accumulated 130,000$ of these assets (CRV, CVX, BAL, AURA), which means Paladin has made 30% profit on these emissions.
Disclaimer: the profit margin was substantially higher before the FTX blow-out
Rationale:
I believe Paladin absolutely needs to renew this program as it is an efficient PAL distribution strategy to governors that enables us to earn more $ per PAL than we actually spend. For this reason, I believe we should extend the program for at least 3 months.
Additionally, our profitability on these operations is a powerful marketing move that has and will attract clients to Quest.
However, it is absolutely essential the over-spending of the budget doesn’t happen again, which is why we will release an update document with the required information so anyone in the community can hold us accountable if we aren’t through enough.
Means:
- 600,000 PAL;
- Creation of a transparent accounting mechanism;
Sustainability:
This strategy is sustainable as long as the DAO has PAL to distribute, the spread for emissions is positive and our products are positioned on these protocols.
Voting Options:
Yes/No/Abstain