Add DAO liquidity to GHST-Alchemica Pairs

I propose that the DAO should add liquidity to all four GHST-Alchemica pairs. This has been discussed quite a bit over the last few weeks at the hangouts and DAO meetings. The following proposal incorporates feedback gleaned from those discussions and the Discord DAO forums.

  • Add 30,000 GHST + equivalent alchemica value to each of the four alchemica-GHST pools on QuickSwap for a total of 120,000 GHST + corresponding alchemica
  • Do not stake those LP tokens for GLTR.
  • Add all liquidity in a single tranche after and if the core proposal passes.

Further discussion points:

  • Should the DAO develop an ongoing liquidity plan? For example, the DAO could vote to add 30,000 GHST + corresponding alchemica monthly x 6 months.
  • Should the DAO stake LP tokens for GLTR? The DAO currently has no GLTR or exposure to it as a native asset. It is thus unable to assist in providing liquidity. This may become problematic if current LPs exit into other aspects of the ecosystem leaving the GLTR pool without sufficient liquidity. Options for this could be to stake LP tokens, to purchase GLTR with treasury GHST + add LP, or to increase the GLTR reward weight
  • How can we transition to a more independent process that does not require Pixelcraft’s assistance in managing the liquidity? I appreciate @coderdan feedback here regarding the ability of the eDTF or other entity to manage LP tokens.

I will plan to submit the sig prop soon, so thanks for the feedback.
Dr Wagmi

5 Likes

Sounds reasonable.

Would the DAO consider market buying 30,000 GHST worth of GLTR to be used for LPing with GHST without staking in order to get exposure to it aswell? Personally, I am in favour of this.

It would probably push GLTR prices up at least temporarily but are there any downsides I am missing with this?

3 Likes

I’m in favor of the DAO adding liquidity to all 4 GHST-Alchemica pairs and not staking LP tokens for GLTR. We can always add a core proposal down the road about adding a GLTR pool for liquidity if somehow that pool becomes in danger of getting too low in liquidity.

3 Likes

I think this is reasonable, all 5 tokens should have an adequate amount of liquidity after all

1 Like

Maybe add a voting-option for the approx double of the amount.

2 Likes

I don’t see downsides in adding liquidity. The DAO has idle assets that could be put to work and benefit the game. Moreover, I insist on designing a plan of adding more liquidity and including it in the final proposal.

Right now, it’s not enough liquidity even for some lone wolfs to enter the game, not talking about organizations.

3 Likes

Thanks for the feedback. If you are insisting on a design for a plan to add more liquidity, do you have initial thoughts? Would you like a set amount monthly? Addition of a flat percentage of the total or earned through crafting? What should our goal liquidity amount be? I would like to see no less than 1% slippage to purchase 80M GLTR which is what’s needed for a fully upgraded L9 Parcel, however we would need ~6x more liquidity than we have now to accomplish that.

5 Likes

Why cant the crafting alchemica just be fed straight back in at whatever rate wont completely kill the GHST treasury?

It could be, if we were to set that up. Basically the GHST would be deposited into the Realm contract, and it would automatically match GHST with Alchemica during crafting and add liquidity to the pair on Quickswap.

2 Likes

I honestly just want DAO to add liquidity as much as possible. I see zero downsides in it. But I understand that many frens could have concerns about adding 800k+ GHST worth liquidity at once. So, I propose at least having a plan 6-12 months plan. Fixed amount or % of revenue DAO receives - everything works for me.

Although, I don’t know what to do with GLTR since DAO owns nothing. I’m against buying it from the market. Alternatively, we could stake DAO Alchemica tokens and regularly add every farmed GLTR to the liquidity pool.

For reference, here are the current APRs for GLTR pools:
image

3 Likes

We also need to consider future Rarity farming rewards. We had to use some DAO funds for this season and likely will for next as well.

2 Likes

This is the core decision we need to make. What % of DAO GHST is for RF, what % for operation, what % is LP support. We need a budget…

edit: why not 1/3, 1/3, 1/3? Just go with it and avoid wasting time on the chaos of people defending assets over farming over community development. In addition to that… any alchemica that comes in that isnt routed to one of those three areas, should be burned.

1 Like