Deposit additional POL in the T - ETH Curve pool
AI summary
This proposal asks the Threshold Council to deposit up to 150 million T tokens into the T-ETH Curve liquidity pool. This move aims to increase the DAO's 'Protocol Owned Liquidity' (POL), meaning the DAO itself provides the liquidity rather than relying on external incentives. The deposit would be single-sided, meaning only T tokens are added, and would last until March 31, 2022, with a maximum of 10% slippage.
If passed, the Threshold Network DAO will own more of its liquidity, potentially reducing future costs for incentivizing liquidity providers and generating fees from the T-ETH Curve pool. This benefits the DAO's long-term financial stability, but exposes the DAO to 'impermanent loss' risk, which is a temporary loss of funds experienced by liquidity providers due to price changes.
Voting results
Votes over time
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🐳 Whale votes
4 votes > 5% VPFull proposal
Background Currently the Threshold Network has an ETH loan that it is using to LP in the T - ETH Curve pool. This pool is currently being incentivised through Votium, the DAO is capturing approximately 60% of the incentives from the pool.
Motivation Building out Protocol Owned Liquidity (POL) means that the DAO does not need to continue “renting” liquidity through liquidity incentive programs. The DAO is able to take a longer time horizon and wear the impermanent loss (IL) risk which ensures that liquidity does not get pulled in times of volatility when community members need access t…