TL;DR :Migrate 25k$ of PAL$ and 25k of LUSD from Curve PoL to Blueprint
Context
Paladin has used the funds raised during its LBP in order to own its liquidity. Since launch this has enabled the DAO to always offer sufficient liquidity to trade $PAL, earning fees in the process. The profitability of that strategy was enhanced by using our own product (Quest) and incentivising it with PAL in order to create a new revenue stream. This income stream is the second largest with Quest fees, and while scaling it is ill-advised, especially considering the upcoming tokenomics, we believe continuing to optimize it is capital.
Currently the PoL farming strategy has been done on Curve, Balancer and Bunni, with the DAO owning:
→ 492,602$ of liquidity on the PAL - ETH on Curve - (99.9% of total liquidity);
→ 37,887$ of liquidity on the PAL - ETH on Balancer (Arbitrum) - (38.7% of total liquidity);
→ 55,403$ of liquidity on the PAL - FRAX on Uniswap / Bunni - (87.8% of total liquidity);
All of these strategies are of course profitable, however we’ve seen a large decrease in profitability on the Curve pool due to price action of both CRV and PAL.
Rationale:
We believe removing 10% of the current Curve PoL will not significantly affect swap slippage, nor will affect our ownership of the liquidity. For this reason we would like to use this opportunity in order to expose our PoL exposure to stablecoins and experiment with the Solidly type model.
Solidly models have proven to be very effective with low amounts of TVL and we’re curious in exploring their efficiency with PAL in order to subsequently help clients replicate the strategy. This is also our first step before we start expanding Quest on Solidly type AMMs.
We chose Blueprint because they are on Ethereum, have an interesting twist on the model with ALM managers, and have offered us a launch partner deal in exchange for deposited TVL.
Means :
170,000 PAL and 25,000 LUSD (10 ETH at current prices)
Technical needs :
None
Vote Options:
For/Against/Abstain
- For
- Against
- Abstain
