Summary: Optimize PoL and vote incentives for liquidity efficiency
Context:
As per Treasury Management proposal #7, Paladin has been harnessing PoL farming for the past eighteen months, while it has been a successful way to pass the bear market and prove our product market fit, the use of the farmed assets needs to evolve with the DAO needs.
Nevertheless, efficiency on both Curve and Balancer has been heavily hit since the beginning of the year and some other opportunities have arisen that we cannot ignore. We should use these new opportunities in order to grow our liquidity on L2s. We have 25,000 idle LUSD that were supposed to go into Blueprint, but because of the protocol’s hibernation, they are available for a new strategy.
We propose to swap 25,000 LUSD to DOLA, the leading stablecoin on Base and pair it with the equivalent in PAL on Aerodrome, as well as migrating current incentives allocated to Aura there.
Additionally we wish to migrate the whole Paladin Curve PoL into a new and more efficient crypto ng pool in order to lower swap cost, and make swapping a more enjoyable experience for users on mainnet.
Rationale:
Outside of Aura’s lower efficiency, we have accumulated a significant amount of Aura (68,905 vlAURA) and have been the sole voter in the gauge for 5 rounds. It would seem that the incentives are not needed anymore, hence the suggested migration.
Additionally, we have BD opportunities around several products on Base that make it worth our time to deploy some liquidity there. Aerodrome being the venue of choice, with its 3.2x efficiency and visibility, it should not be a debate. Additionally, Inverse Finance, DOLA’s originator is a very large AERO stakeholder, with 1.33% of all AERO under management.
These integrations will enable to test drive Aerodrome while we built out our dedicated marketplace and unlock new upcoming integrations for PAL. The vote efficiency on Aero should also enable to grow our revenue by a fair amount.
Actions:
-
Swap 25,000 LUSD to DOLA;
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Get Base to whitelist PAL for bridging (in progress);
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Bridge the 25,000 DOLA and PAL equivalent to Base;
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Start bribing ~10,000 PAL per week on Aerodrome;
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Create a new crypto ng PAL-ETH and migrate the whole PAL-ETH liquidity there;
Voting options:
For / Against / Abstain
- For
- Against
- Abstain
