Hey pDAO, the IMC are looking for some feedback on 3 items. All of these are in flux, not finalized, just draft numbers, blah blah – don’t hold us to them and give thoughts freely.
RPL/ETH Protocol Owned Liquidity (POL)
We’re thinking of doing ~4 months worth of buying POL in the 20-25 ETH range per month on Uniswap. We were thinking of alternating between adding to a range-bound (eg 0.005-0.03 or .0075-.021) LP and a full-range LP each month. Note that since we only have RPL, any POL stuff implies selling RPL to buy the paired token; this is not a huge amount, but noting it.
RPL/ETH liquidity mining
We’re considering increasing the current amount (1.25 ETH + 50 RPL per fortnight). Right now it’s on Balancer, but that need not be the case.
Coincentivizing osETH/rETH along with Stakewise
This one’s a bit complex. The pool is very efficient cuz both sides are LSTs. That said, it’s unclear how good osETH/ETH liquidity is thus far – without that we don’t gain much for our main goal (rETH/ETH liquidity). We also want to avoid over-growing a specific LST route, as this can damage rETH if that LST has an issue and depegs. That said, long-term, if we can have this be a common pattern this can make our liquidity a lot cheaper. Numbers like a 25% coincentive (we put in 1 unit for every unit they put in) have been floated.
Full-range POL guarantees we always have a valid price (which is also important for oDAO duties, btw). Big-but-not-full ranges are similar with some active management to expand/shift, but that’s a much weaker guarantee.
If the attacks are trying to move the price within the bounds of the range, range-bound LPs actually protect stronger than full-range (as there’s more dollars per tick that need to be “defeated”). Ofc - if you only have range-bound, then the cost to go to a price of zero or infinity is finite, so full-range is also important.
We’re roughly talking about selling 10-12.5 ETH worth once a month. I’m seeing 9 sales of 12+ in the last day, with 5 being over 18. I don’t think we matter much here, for better or worse.
I agree in terms of getting there quickly. I think I’ve likened it to getting 20-25x TVL by liquidity mining as opposed to using POL, but ofc the money is spent permanently vs kept as an LP NFT asset. I think we can get to a relevant impact to trading slowly over time (especially in cases where liquidity is removed by large players).
This is… somewhat possible. Example relevant tools could be to incentivize a specific range on Bunni, or to preferentially incentivize LP positions that have more ETH in them on Merkl. It’s an interesting thought.