Tokenomics - Optimism Liquidity Implementation

Governance Proposals
1

Title: Tokenomics - Optimism Liquidity Implementation
Author: Icedcool🏴
Squad: Tokenomics Department
Discord Vote: Link
Forum Post: Link

TLDR

  • Challenge
    • In Optimism L2 we currently have no DAO owned liquidity.
    • L1 Gas is increasing and BanklessDAO Subdao operations are growing on Optimism.
  • To resolve this we would like to migrate 5 ETH and ~2.2M BANK from mainnet, in order to implement a full range position on Uniswap V3.
    • This will create an initial liquidity pool of ~$20k.
  • Additionally we will be implementing an Arrakis dynamic ranged position to support contributors wanting to provide LP.

SUMMARY

BanklessDAO currently has no DAO owned liquidity on Optimism. As the DAO has started to work with Optimism, BanklessDAO operations have started to grow on this L2. To support the usage of BANK the Treasury Department would like to migrate $20k of liquidity into a BANK/WETH full range Uniswap v3 position.

This proposal is to gain approval from the DAO to implement this liquidity to enable Optimism operations.

SPECIFICATIONS

  • Migrate 5 ETH and ~2.2M BANK to the Optimism BANK/WETH Uniswap V3 position.

IMPLEMENTATION

Implementation steps would be as follows:

  1. BDAO multisig would bridge the 5 ETH and ~2.2M BANK to Optimism

  2. Lastly the multisig would deposit the assets into the Optimism BANK/WETH Uniswap v3 position.

Post implementation the liquidity depth will be at roughly $20k, which will enable initial Optimism Liquidity. The Treasury department will observe and analyze the volume and usage, and after 3 months either maintain, or deepen the liquidity.

This vote will be active for 7 days, and pending the approval of this vote, will go to snapshot for DAO wide approval.

Vote

Optimism Liquidity Vote
  • Approve
  • Abstain
  • Reject
0 voters
2 Likes
2

Great intiative
As a suggestion, Bungee https://www.bungee.exchange it’s opening a summer bridge with 400 K in compensation and also has a isurace back for funds

1 Like
3

I’ve got 300K BANK already on Optimism waiting for us!! LFG!!

5 Likes
4

What’s this mean? Sorry, newb question.

5

Makes sense, both from a cost perspective and the Optimism projects that BDAO is working on. Just one question.

You mention that after 3 months that TD will review to either maintain or deepen liquidity in the future. Does the TD team know what percentage of total BDAO pool on mainnet they would consider moving (if this implementation shows successful results)?

1 Like
6

Potentially 50-80%, depending on operations on Optimism.

Ethereum will get expensive, and L2’s are where we will want to be.
Optimism looks like a great potential future home for the DAO.

1 Like
7

Thanks for the response. Totally agree with L2’s and the benefits.