Curve Transition Plan - Securing funds for liquidity
AI summary
This proposal seeks to secure $4 million in funds to provide liquidity for the Aavegotchi token (GHST) on decentralized exchanges (DEXs) like Quickswap and Balancer. This is in anticipation of the closure of the 'curve' bonding mechanism, which currently provides liquidity. The goal is to ensure smooth trading and prevent high price slippage for new users by maintaining a target of $5 million in total liquidity. The plan involves the DAO directly providing liquidity using its existing DAI and GHST, and potentially launching a liquidity mining program to attract external liquidity providers.
If passed, the Aavegotchi DAO will allocate up to $957,000 DAI from its treasury to provide liquidity, aiming for a total of $4 million. This will benefit new users by reducing trading costs and slippage for GHST. The DAO itself will incur impermanent loss risk from providing liquidity, and may spend an additional $250,000 on a liquidity mining program if implemented. The proposal does not explicitly state who loses, but the DAO's treasury will be reduced by the allocated funds.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Author: Maxicrouton#1596 GotchiID: 24877
Discourse links: https://dao.aavegotchi.com/t/dao-curve-transition-team/4676
INTRODUCTION
Hello Frens !
The proposal to close the curve is in progress and the vote for a 25/25/25/25% split is likely to pass. One of these 25% was voted by the DAO to be used as liquidity to allow new entrants not to suffer from high slippage and to have a nice and smooth price discovery.
At the moment the liquidity on the DEX is quite low. We have about $2 million in liquidity in the GHST-USDC Quickswap pool and we can assume that if we do nothing it will drop drasti…