[AGIP87] Over-the-counter (OTC) Agreement for GHST Holdings of 0VIX Users

Authors: 0VIX Protocol GotchiIDs: 22864 (@Maxicrouton) Quorum requirement: 20% (9M) Vote duration: 7 days Discord Thread: Aavegotchi>DAO>0VIX Discussion Preceding SigProp: Over-the-counter (OTC) Agreement for GHST Holdings of 0VIX Users Link: https://snapshot.org/#/aavegotchi.eth/proposal/0x42bbb17dd055adac28433a16b145ff45e732080402cf44e7d7dfec051555f16f

Modifications from sigprop :

1. Removed explicit multisig address as it will be voted in a separate proposal focused on the returning of funds
2. Added paragraph (lines 23-26) to explain on how OTC price will be calculated in a verifiable way.

Introduction:

In order to prevent a negative market impact of a sudden liquidation of 763,624 GHST tokens, an Over-the-Counter (OTC) transaction for DAI held in the AAVEGOTCHI DAO treasury is being proposed. @Maxicrouton is one of the main points of contact here that will assist with that transaction. This method is preferable due to its ability to reduce a substantial price pressure that could result from a sell order of this magnitude.

Objectives:

In essence the goal is to secure a fair OTC deal that meets the needs and expectations of all stakeholders involved. Aavegotchi DAO’s goal is to mitigate the sell pressure on the GHST token while concurrently ensuring the rightful owners of the funds receive their funds 0VIX users want to have a fair price and get the maximum value from funds recuperated

To circumvent market volatilities, the OTC price will be defined by averaging Chainlink prices over the time period that this CoreProp is voted on.

To derive the price of the GHST / DAI pair from Chainlink, the block-per-block price feeds on Polygon PoS will be used. The final OTC price for swapping GHST into DAI will be determined as the simple average of all the GHST/DAI pair prices derived at each block (~300k distinct values).

Upon passing of the CoreProp vote, a csv file and simple script will be submitted to the Aavegotchi DAO with the final OTC price value for everyone to verify publicly. Script link: https://gist.github.com/pestopoppa/28630e7a6ae0215e071de7decf678e6a

Option A:

Yes to the OTC deal at a fixed price. That option offers the key advantage of price certainty and stability for both Aavegotchi DAO and 0VIX users. It circumvents market volatility by averaging prices over the days that the CoreProp is voted on, thus providing a quick execution route for the transaction.

Option B:

This CoreProp has been discussed extensively over the past days and weeks. If there are questions please refer to the 0VIX discussion sub-channel on the AV DAO discord.

If the community feels it requires even further discussion, then please vote for this option. Options:

Option A: OTC deal at a fixed price Option B: Further Discussion needed

The returning of funds will be voted on separately and should appear on Snapshot after review by the community. As it stands now the multi-sig co-signers would be Hamzah Khan, Head of DeFi at Polygon Labs and Benjamin.lens, core-contributor at QiDAO.