🇫🇷 Disponible dans le 2ème post
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Proposal summary:
This proposal aims to establish a liquidity strategy for the REG token on Sushiswap v3, using concentrated liquidity pools. The objective is to improve the token's liquidity, thus facilitating purchases for future DAO participants and stabilizing the REG price.
Another proposal will be made to validate the position management committee, the composition.
This proposal therefore aims to validate the creation of the positions mentioned below, the implementation entrusted to RealT while waiting for the committee to be ready.
The first pool will be in USDC, other proposals can be made later to set up the same type of strategy for other stablecoins
Motivation:
Adding liquidity on Sushiswap v3 will improve the accessibility of the REG token, encouraging increased participation in the DAO. This strategy aims to support the growth of the RealTokens ecosystem by offering better price stability and facilitating transactions for investors.
Specifications:
- Use of Sushiswap v3
- 200,000 REG to be deployed
- Distribution of liquidity across multiple price levels
- Safe DAO for liquidity management 0x0212B941Cb5c80c9FcDA00035D126Ac067169E72
- Pool REG/USDC fee 1%
Context:
We propose using Sushiswap v3 for its concentrated liquidity pools feature. This platform will allow for strategic distribution of liquidity across different price levels, thus optimizing the efficiency of invested capital. The initial strategy consists of deploying 200,000 REG distributed across several price ranges.
Implementation steps:
- Creation of a Gnosis Safe for liquidity management
- Approval of the proposal by the OnChain DAO
- Transfer of 200,000 REG to the management Safe
- Creation of liquidity pools on Sushiswap v3 according to the following distribution:
- 100k REG between 1.88$ and 10$
- 10k REG between 1.88$ and 2.00$
- 20k REG between 2.00$ and 2.16$
- 20k REG between 2.16$ and 2.35$
- 50k REG between 2.35$ and 3.16$
- Selection of the management team to be added to the Safe
The price ranges are subject to adjustment based on market conditions and REG price at the time of pool creation, as the DAO only puts REG into liquidity, the pools must be created above the REG price at the time of creation.
Team:
- RealT: creation of a Gnosis Safe and positions
- Realtoken DAO to manage liquidity with the Safe
The management team will be composed either exclusively of the REALT team, exclusively of elected community members, or a combination of both. The exact composition will be decided following a discussion on the governance forum before the onChain vote.
Budget:
- The main cost is the allocation of 200,000 REG for liquidity
- Transaction fees on Gnosis, for the creation of the Safe and positions (carried out by the REALT team)
- A budget of a few thousand REG will be allocated to compensate the management team, the exact amount will be determined in a subsequent vote.
Financial implications:
- This strategy involves using 200,000 REG from the DAO's treasury.
- Potential revenues for the DAO come from trading fees generated by activity on the liquidity pools.
- If the management team is compensated, managers could sell the REG
- 26.2% increase in the circulating supply of REG
- Increased token liquidity, allowing for smoother transactions and reducing manipulation risks
- Ease for newcomers and existing holders to buy the token to participate in the DAO
- Progressive exchange of REG for stablecoin, allowing to feed the DAO's treasury
Roadmap:
- Discussion on the governance forum - 7 days min
- Safe setup - 0 day
- OnChain vote - 7 days
- Queue - 2 day
- Creation of positions by RealT - 3 days
Objectives:
- Facilitate REG purchases for newcomers and existing holders
- Reduce manipulation risks
- Decrease transaction slippage
- Acquisition of stablecoin to feed the DAO's treasury
Success metrics:
- Progressive increase in REG price
- Increase in the total number of wallets holding REG
- Increase in the average number of REG per wallet
- Increase in trading volumes
Alignment with the mission:
This proposal aligns perfectly with the DAO's mission to manage the RealTokens ecosystem. It aims to improve the liquidity and accessibility of the REG token, thus strengthening the entire asset tokenization ecosystem.
Implementing a liquidity strategy will reduce the risk of manipulation and improve the stability of the REG price.
Setting up a management team will allow the community to take ownership of liquidity management, the life of the DAO.
Key terms:
- REG: Governance token of the DAO
- Sushiswap v3: Decentralized exchange platform with concentrated liquidity pools
- Concentrated liquidity: Method allowing to provide liquidity in specific price ranges
- Safe: Smart contract allowing to manage funds securely with multiple signatures
- Slippage: Difference between the requested price and the actual price of a transaction
This proposal aims to strengthen the RealTokens ecosystem by improving the liquidity and accessibility of the REG token, while offering control and adjustment mechanisms for the community.
Points to discuss before creating the onChain proposal
- Composition of the management team
- Determine if the team will be composed of REALT members, community members, or a combination of both
- Define the selection or election process for team members
- Compensation of the management team
- Discuss the exact amount to allocate for compensation
- Determine the compensation structure (fixed, performance-based, etc.)
- Potential adjustments to the liquidity strategy
- Discuss the relevance of the proposed price ranges
- Consider other possible distributions of the 200,000 REG
- Frequency of reports and adjustments
- Define how often the management team should report to the DAO
- Discuss conditions that would trigger a new vote to adjust the strategy
- Choice of trading pair
- Confirm if the pair will be REG/USDC or REG/XDAI
- Initial duration of the strategy
- Determine an initial period after which the strategy will be re-evaluated
- Procedure for managing positions in full stablecoin
- Refine the proposed strategy for positions that go to full stablecoin
- Discuss thresholds and timeframes for triggering actions
- Security mechanisms
- Discuss control mechanisms to prevent abuse or management errors
- Detailed success metrics
- Define quantifiable objectives for each proposed success metric
- Communication plan
- Discuss how updates and performance will be communicated to the community
- Exit strategy
- Define the conditions under which the DAO might decide to end this liquidity strategy
These discussions will allow refining the proposal, obtaining community consensus, and ensuring that all important aspects are taken into account before the final vote. This will strengthen the legitimacy and effectiveness of the proposal once implemented.
📍 CHECK-LIST: ( 🔲 : under discussion / ✅ : finalized / ❎: not applicable )
✅ Proposal Summary
✅ Motivation
✅ Context
✅ Implementation steps
✅ Team
✅ Budget / Allocation
✅ Roadmap
✅ Objectives
✅ Key terms
