TL-DR: Add 600,000 PAL to the POL strategy in order to deepen the depth of the pools, reduce slippage and enable larger buys.
Context:
PAL token just became liquid. There is currently one live 60/40 PAL-ETH pool in Balancer with ~400,000$ of depth (70 ETH our of 320w/ PAL equivalent). This has led to high slippage especially on the sell side from farmers.
Rationale:
PAL price on the short term is irrelevant as there are quite a few large announcements in the works. However, the current depth prevents large actors from aping into PAL. This is a shame as LPing as a DAO is proving to be an extremely lucrative opportunity for us with consistent 50%+ APY.
On top of the LPs currently in preparation for Curve (should be live by monday since we had a price feed extremely fast, with ~1,500,000$ depth). Until then, we will double the depth of the 60/40 Balancer pool (to 800,000$ - 70 more ETH added w/ PAL equivalent) before closing it to open an 80/20 PAL-USDC pool on Balancer (500,000$ depth to begin with, costing us 30eth to be swapped in USDC).
Balancer will activate veBAL tokenomics on the 4th of April and the same Warden hyper-farm strategy can easily be duplicated there for us. Also, having an 80/20 pool will enable large buyers to ape into PAL with low slippage.
Means :
- 600,000 PAL to be deposited as LP
Sustainability :
- This would bring the total circulating supply to 3.1M PAL (3M$ Market cap) and enable the DAO to control 38% of the circulating supply as an LP.
Voting options: Yes / No / Abstain
Duration: 48h, starting 6pm CET today (this is urgent).