The idea will be to sell half of these tokens to USDC (or another stable) to add up to Paladin DAO’s holdings and cover operational expenses through the end of 2024.
And to lock the remaining half for a year to leverage in order to grow Paladin products.
Means
Sell 80k $APW for USDC and lock 80$APW in veAPW for a year
In favor of selling APW to improve the operational budget, especially as the DAO is quite profitable on this swap however not sure about re locking half, what strategy do you have in mind to grow Paladin products with it ?
Also max lock is 2 years, so locking 80k for 1y will represent 40k veAPW
I think he means the thWAR pool; Spectra has been a very good sink for Warlord in general.
This is pretty important to guarantee covering expenses until of year, however anything that creates double digit slippage is probably the wrong strategy. I’d be inclined to instead deploy a single sided Uni v3 position of APW on a small range (effectively a sell order), thus avoiding strong sell pressure, but instead taking a bit more time to execute
Got it, do you have some metrics ? (i.e bribes/votes spent vs emissions & TVL/volume)
Wondering if 40k veAPW would be enough to sustain the pool
Agree, slippage was my second concern, but it depends how quick the funds are needed as there are solutions to reduce price impact like UniV3 as you said & also CowSwap TWAP Orders if urgent, and 1inch limit orders or OTC deals if not
Not really sure what sustaining the pool means; since users are getting 150%+ APR, which is extremely generous. This represents 112k$ of APW distributed of a year thanks to 245,000 veAPW voting in our gauge. None of these are the DAOs.
So 40k veAPW does not sustain the pool. It adds 18% APR to the current deposited TVL (which is pretty fair tbh)
Well we need to cover dev expenses, last month was a bit short, so we don"t need it all in one go. We missed the target by 5k$ last month, can’t afford to do the same this month.
I guess these votes are bribed OTC then, right ?
If yes, how much does it cost and can we expect these votes to stay over time ?
Ok so assuming all voters switch gauge, the pool would still yield 18% APR for 200k TVL
If the goal is to retain 40k veAPW, why not relock 25% for 2 years instead of 50% for 1 year ?
It would retain the same voting power while allowing to sell 75%
An alternative could also be liquid lockers but not sure if they are using others besides SD.
Ok then assuming these votes will fade away at some point, meaning that for the same TVL the APR would be around 18% with 40k veAPW, why not just bribe instead of relocking ?
Yep but also reduces exposure since the DAO would lock 25% less
While Spectra v2 seems to be fully live now, let’s not forget that all governance & emissions were literally stopped for 1y+ when deciding to transition from APWine v1, which impacted every locker for a large period as veAPW positions were useless. Might happen again before a potential v3 ig
Just to be clear, it would be base yield (40% APR) + 18% = 58% APR
Sure, but we also take the risk from being fully out of a successful project + ruin friendly relationships. Since no one has ever bribed we don’t know the efficiency of such strategy. I’d wait and see
