PGM-48: Migrate 50,000$ of liquidity to a Blueprint PAL-LUSD pool

TL;DR :Migrate 25k$ of PAL$ and 25k of LUSD from Curve PoL to Blueprint

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.

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 :

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0 voters

I am in favor of this proposal, especially if Paladin receives a special offer for the launch. I am also excited to see what Quest can achieve on VE33’s

In favor of this proposal, looking forward to observe how the changes they made to ve33 design will evolve !

What are the terms of this launch partner deal ?

Would be great to have someone from BluePrint jumping in & sharing more infos about their ALM manager & the deal proposed !

1 Like

Hey, I’m Kila with the Blueprint team. Happy to answer any questions you have about the product or partnership.

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Hey Kila, great to see you here !

Thanks ! The proposal mentions that Blueprint offered a launch partner deal, could you share more details about the terms for the deal proposed to the DAO please ?

As for the product, no particular questions on my side, but can make sense to share some links & context for those who might not know about it ig

Paladin was delegated 250 000 veBLUE (1% of current locked supply) in exchange of us providing liauidity and incentivising it

Got it thanks !

Any minimal treshold / duration for amount added in LP & amout of bribes ?

No amounts where negociated so I’ve deduced it was price of blue delegated / 52 per week. If we thing the strategy is worth it we can deposit some more to maximize efficiency.

I’ve personally financed the first week of incentives in the meantime.

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The vote is live on snapshot.

Quorum PGM-48: 788 359 votes


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