This proposal by the core team suggest to withdrawal ~$20k in USDC liquidity from the Community Treasury managed Quickswap pool, and to buy $BAL/veBAL to vote for the Balancer pool, this will increase our vote % and hence $BAL rewards currently sitting at ~55% APR by roughly 25%.
Note that this proposal goes hand in hand with another recent proposal: Proposal: move liquidity from Quickswap to Uniswap (Polygon). They are not mutually exclusive but executing this one without moving towards managed liquidity on Uniswap (Polygon) will reduce the total liquidity of $THX, this doesn’t seem desirable.
- (major) the Balancer pool currently relies on friendly whale votes for the $BAL emissions, acquiring $BAL/veBAL takes more direct control of $BAL rewards by the protocol
- diversify the treasury which currently consists of $THX, $USDC and $ETH
- growing the relationship with Balancer DAO, as our protocol grows opening more interesting prospects like treasury token swaps
- more eyes on the THX Network protocol through the snapshot vote approving the multisig vote (also a risk, see 3)
- exposure to $BAL price
- lock of $20k liquidity in veBAL (starts @ 1 year for max voting power)
- THX Network multisig needs approval by Balancer DAO for voting, this takes time and effort
- gas costs for mainnet migration and voting (estimated at $200)
Please indicate if you agree with this proposal below with a green checkmark ( ) for yes or no with a red stop sign () and elaborate on why and give any suggestions to tweak the proposal.
This proposal will be open for till the 17th of June for discussion. Considering no major additional risks are identified and a green checkmark majority is reached, plus pending the decision on Proposal: move liquidity from Quickswap to Uniswap (Polygon) concrete next steps, including step by step instructions for the multisigs will be posted on the forum.