Facilitate onboarding of new projects with an amount of PAL dedicated to OTC deals.
This post ideas were first suggested in PIP-16 comments, then included in the PIP-XX as both topics are linked but decided to split both after receiving feedback about it, and considering this proposal requires an expense.
This proposal mostly makes sense if the conditional whitelisting system proposed in PIP-XX is approved, as the OTC deals matching were thought as a way to help onboard more users & reduce the DAO liabilities but posting both at the same time for context.
The goal of this proposal are to limitate the slippage for external projects interested to buy & lock PAL, as well as accumulating stablecoins to reduce the DAO debt.
The goal is to allocate a PAL budget to match up to 40% of market buys with OTC deals, managed by the treasury committee to encourage PAL acquisition from external projects. Accumulating USDC from OTC deals can also help to accelerate the debt repayment.
Assuming a project wants to acquire 100K PAL ($10K at current price), it could do the following:
- Contact the committee (communicate total amount to buy & setup OTC deal price)
- Market buy & lock 60% (so $6K here e for 60K PAL)
- OTC buy & lock the remaining 40% (So $4K here for 40K PAL)
- External projects submit PIR to get their quests whitelisted
40% OTC matching amount should be capped at $10K total buy to insure this program allows to onboard as many projects as possible. Moreover, no deals should be done under 0,1$/PAL.
Committee could define the OTC price based on the 1 week TWAP price.
The proposed allocation is 1,5M PAL - 3% of the total supply - to onboard new lockers.
Assuming most want to acquire & lock 100K PAL total, this could:
- Match up to 37 acquisitions at the current price (1,5M / 40K)
- Almost double the amount of PAL locked (+ 3,75M locked)
- Generate up to $148K at current price so more in reality (4000$ x 37)
As a reminder $180K remains on the Mimo loan which must be fully repaid in 5 months, so the above solution would cover most of it while onboarding & aligning many projects.
If the conditional whitelist mentioned above is approved, it ensures that projects that project would indeed lock their PAL, otherwise the whitelisting PIR would be invalid.
This proposal only concerns the Paladin DAO, but if @MithrasLabs wants to allocate more budget & use the funds to extend the runaway used for Paladin developpement please share it in the comments, the % can be reworked to consider 20%/20% for the DAO & the company.
The committee could be mandated to manage it as well.
- Reduce slippage on PAL buys for interested projects
- Enable to potentially onboard many projects
- Generate enough stables to repay most of the loan
- Sell up to 3% of the PAL supply OTC
- Requires the committee to manage deals
- Up to 1,5M PAL
- Transfer OTC budget to the committee (or to a specific msig which can also be considered)
Yes, approve Onboarding program
No, rework proposal
- Yes, approve Onboarding program
- No, rework proposal