Where should 25%[LP allocation] from curve go?

Hello GotchiGang!

Congrats to all of us on our new era from the curve transition.
I have an important question I want you to think about.
Where should 25%[LP allocation] from curve go? At the moment $7.5M Dai sit in DAO and have no benefit from it. At least it suffers from inflation. According to Coderdan [Discord], we need a core or signature prop to have an action with it.

Some initial ideas:

Use it to buyback GHST, same as in [AGIP69], but use GHST from that to make an LP with Dai/USDC in Quickswap.
If we want to play long term, we could make it $25,000 per day and have a buy schedule similar to [AGIP69]. In total we will use $3.75M Dai to make LP for GHST. In the mean time, we can do Alchemica LP with another $3.75M dai.
Just an idea from me. Let me know what you think!

(copy from discord)

Hey, I like your proposal, was planning to do one similar soon. :smile:
I wrote a little summary of where we are in the 7M5$ liquidity allocation

We already used 5M$ for adding liquidity on balancer and the LM program on Quickswap so we only have about 2M5$ DAI left. I propose to use 50% of this amount to buy GHST, and pool it with 50% of the stable in a Quickswap pool

Also, the 5M$ used prior to the curve end came from the DAO wallet, from which we took roughly 4M$ worth of GHST and 1M$ DAI. So we need to reimburse the DAO wallet with these 5M$ borrowed, we have two options to reimburse :

  1. Reimburse all the funds (5M$) in DAI. => simple
  2. Reimburse the 4M$ worth of GHST in GHST, so It means using some DAI to buyback GHST and reimburse the DAO. => I like this option

Thanks for correct my number. :laughing:
Let’s say we choose option 2. We have to payback 2,740,000 GHST and 926,022 USDC to DAO.
From my understand we better to do this within 2 month because QS LM will expire soon.

According to your choice in discord Discord

  1. 1 GHST is 1 GHST, trying to reimburse the max GHST we can with the funds we have (leading to reimburse all the GHST if we succeed to get enough)
  2. Reimburse at the GHST value of the proposal (Would be a fix 3M$ of buy of GHST)
  3. Reimburse at the added liquidity GHST value (Would be a fix 4M$ of buy of GHST)

I love choice 1 and if we do quick enough and take an extreme sample (bought all GHST at $1.15) DAO will have the same amount of GHST and USDC [2,740,000 GHST and 926,022 USDC] with another $3.5M in LP allocation to do LP.

So the LP making will separate into two phases

  1. buyback GHST until we have 2,740,000 GHST and pay back to DAO
  2. Use the remaining DAI to buyback and make LP

Scenario 1: GHST price rise up so we cannot acquire full amount. We will pay back as much as we can.
Scenario 2: We could acquire 2,740,000 GHST but cannot payback 926,022 USDC. We will pay back as much as we can.
Scenario 3: We could acquire 2,740,000 GHST and payback 926,022 USDC. We will use remaining DAI to buyback and make an LP.

Let me know what you think