Amendment to terms in TIP 46: Defi Liquidity Bootstrap and Growth
AI summary
This proposal seeks to amend the terms of an existing agreement with Sense Capital, a market maker, regarding a DeFi liquidity program. Specifically, it reduces the final Bitcoin (BTC) collateral requirement for Sense Capital by 50%, from 9 BTC to 4.5 BTC. This reduced collateral will be posted in three monthly installments of 1.5 BTC each, starting after this proposal is ratified. The original agreement, TIP 46, aimed to boost liquidity for tBTC, a wrapped Bitcoin token on the Threshold Network.
If passed, Sense Capital will need to provide less collateral to continue its market-making services, potentially easing their financial burden. The Threshold Network benefits from continued liquidity provision for tBTC, which could lead to increased trading volume and stability. The DAO's treasury will receive 4.5 BTC less in collateral than originally planned, which could be seen as a loss of security, though the rationale suggests Sense Capital has provided significant value.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
This Snapshot vote is to ratify a Threshold Treasury Guild committee recommendation to update the terms of agreement with market maker Sense Capital as follows:
"The Threshold Treasury Guild committee recommends reducing the 3rd and last BTC collateral requirement (Sense has posted the 1st two, totaling 12 BTC) outlined above (see: TIP 46: Defi Liquidity Bootstrap and Growth Part I - Market Maker - #7 by sensecapital ) by 50% (to 4.5 BTC) and breaking it into 3 monthly posts.
Rationale: in addition to changing market conditions in the last year (price of BTC was ~$28k when TIP-46 went to Go…