Diversify ~$20k Community Treasury USDC into $BAL/veBAL

Community Treasury
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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.

Benefits

  1. (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
  2. diversify the treasury which currently consists of $THX, $USDC and $ETH
  3. growing the relationship with Balancer DAO, as our protocol grows opening more interesting prospects like treasury token swaps
  4. more eyes on the THX Network protocol through the snapshot vote approving the multisig vote (also a risk, see 3)

Risks

  1. exposure to $BAL price
  2. lock of $20k liquidity in veBAL (starts @ 1 year for max voting power)
  3. THX Network multisig needs approval by Balancer DAO for voting, this takes time and effort
  4. gas costs for mainnet migration and voting (estimated at $200)

Next steps
Please indicate if you agree with this proposal below with a green checkmark (:white_check_mark: ) for yes or no with a red stop sign (: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.

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:white_check_mark: Except for the work and effort going into the multisig I don’t see much drawback to this. This idea will ultimately benefit all THX token holders, especially those providing liquidity in the Balancer pools, so happy to pay the gas fees for this.The exposure to $BAL is indeed a risk, but seeing how our community already leans on Balancer doing a good job with our LP there, this is quite acceptable for me. Happy to move foward!

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:white_check_mark: Happy to see this move forward!

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:white_check_mark: Looks like a smart move.
The only risk is that APY hunters will jump on THX because of the higher APR and will dump it once it gets below an certain threshold. So I am not sure if the high APR will help or hurt the token price.
But since it will bring more eyes on THX network and alot more liquidity I stand behind this move.

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All replies are in favor! Closing this discussion for now, and proceeding to next steps.

One potential impediment is that a new protocol emerged; Aura Finance that now controls ~20% of the veBAL. See it’s impact on veBAL voting https://twitter.com/AuraFinance/status/1543022889007464449. The governance token $AURA might be a better deal for our protocol than$BAL/veBAL! We will discuss this including some basic calculations in a new thread.

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COMPLETED :v:

See details Next Steps: Diversify $25k Community Treasury USDC into BAL/veBAL - #9 by mieszko