Perfect, no-brainer for me yes yes yes!
Great proposal, solid partnership. Great job guys!
This is precisely the type of partnership the bDAO needs leveraging its media DAO strength.
I overall support this direction, but can you unpack the following?
As I understand, LPs will earn a share of 300 BAL on a weekly basis and some of this will go directly to the DAO treasury? Or will there be a separate contribution to the bDAO treasury on a monthly basis?
Clarity would be helpful, thanks.
The weekly 300 BALs are an incentive for EVERY liquidity provider (every BANK tokenholder can deposit funds).
The DAO treasury will probably be the biggest liquidity provider and therefore get a significant share of the 300 weekly BALs.
I made the example of 50% of the liquidity granted by the BanklessDAO treasury. At the beginning the share/percentage of the Treasury will probably be more/higher. When lots of liquidity will be deposited in the pool, the share/percentage of the Treasury could become smaller.
I really hope that my explanaition is clear. If not, please tell me!
That makes sense, thanks.
I think the connection between 5k per week and 20k per month (50% of which would be going to DAO treasury ~ 10k) was not apparent.
Solid proposal. Onwards and upwards.
Thank you for the feedback. I have added an additional short explanation.
Balancer is a well-respected, longstanding DeFi protocol that adds value to the web3 ecosystem. It was also one of the first ways to add value to BANK holders. Excited for this partnership and for the collaboration with Crypto Sapiens too.
This is a very exciting proposal and I thank you for leading this initiative on behalf of the BanklessDAO.
I am wondering if you could please provide your estimations for the ROI to the BanklessDAO Treasury over the next year. And/or over a longer term if you think that makes more sense.
Surely there are benefits to having this Balancer LP on Polygon and this partnership with Balancer that are difficult to measure, but just in terms of the 4M BANK and 14 weth going out, what should we expect coming back in 2022?
Thanks again for bringing this exciting opportunity to our community!
Solid partnership - looking forward to adding LP in the future as well! Stellar job as always
Hey Chuck, thank you for the comment and your question.
From a pure economic point of you it is difficult to calculate how much BAL the treasury will get from the deposit, as it will depend from how BANK tokenholders will behave (i.e. how much BANK/WETH they are going to deposit in the pool in addition to the 4MBANK and 14 WETH). Nevertheless I think that the final amount will be 50-80k USD for 2022.
Please note that the 4M and 14 WETH are not “lost”. They will only be deposited in the pool. It means that after one year, theoretically the treasury could withdraw from the pool and have back its initial deposit. Of course some impermanent lost could arrive, but it is arguable that it will not be substantial given the 80/20 balance and the current price of BANK and WETH.
In addition, creating liquidity is of paramaunt importance for our DAO. Perhaps putting part of the treasury in the liquidity pool would have been a good idea for the growth of the DAO also without such a strong incentive.
Finally, making a partnership with Balancer - an important DeFi project in the space - could bring significant indirect advantages. After Balancer, other projects could step up and follow the same path in terms of collaboration. This would mean a lot for us, as the goal is to become financially indipendent.
Thank you for clarifying this and adding in your estimation for 2022 ROI, @Eagle. So it sounds like 10-20% ROI (at recent BANK and WETH prices) with the ability to replenish our treasury with the pooled BANK and WETH after 1 year if needed. Stoked about this partnership!
Great proposal! Definitely needs to be passed!
A strong proposal deserving our support. Great work Eagle, siddhearta, and Grendel.
Pretty good strong proposal Eagle and team! A no brainer for em
This summary of expected revenue is very helpful, as the mechanics are quite involved.
Yes! Two powerhouses joining
This is an incredible proposal. We certainly need more of this.
Thank you very much for the nice comment!
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