TL;DR
Migrate PAL-wETH liquidity from Base pool on Aerodrome toward Sonic pool on Shadow
Context
The deployment of PAL token on Base and the creation of a pool on Aerodrome followed the launch of Quest on Base and aimed at facilitating low gas fee trading of PAL on-chain to bootstrap volume. There are currently 130 PAL holders on Base, the Aerodrome pool is biggest holder, the top wallet is 60,000 PAL, and total supply is 541,300 PAL
The deployment of PAL token on Sonic followed the release of Rings, a new stable wrapper protocol built in collaboration with Veda. Thanks to the traction of Rings reaching over 100M$ TVL in a few weeks, the deployment of PAL token on Sonic did skyrocket the token trading volume to ATH, and the number of holders is currently 435 for about 3.3M PAL supply.
Rationale
In comparison PAL on Sonic is 6.5x more used than on Base, moreover the current yield for PAL pools on Shadow reaches over 3000% APR while the APR on base is down to zero due to Aerodrome volume based restrictions.
Moving PAL-wETH liquidity from Aerodrome to increase the depth of PAL-scUSD and PAL-S pools is extremely beneficial for the protocol owned liquidity strategy and to facilitate enhanced trading experience on shadow with larger liquidity range supporting buy side.
Actions
PAL Base contract: 0x224114c444e3c3d936532fe08351648700570909
PAL Sonic contract: 0xE4A4353CD8F008f1a70f1a564535990479E8ceb7
Aerodrome Pool PAL-wETH: 0x14Ca4c0da68d1693D47A0b613235B3916ADF408D
Shadow Pool scUSD-PAL: 0xf5129AC94EA471CD044615442739117EbDf1c465
Shadow Pool PAL-S: 0x1B69DD8FE85dCb26B9D6c9929d364D4035fB0b81
Migrate liquidity from Aertodrome Pool and split it between Shadow Pools at the discretion of the council liquidity managers.
- Let’s do it
- Don’t do it
- Abstain