Author: coderdan (1484) Quorum requirement: 20% (9M) Vote duration: 7 days

Introduction:

This proposal seeks to strengthen the Aavegotchi ecosystem by increasing liquidity on Aerodrome, Base's native decentralized exchange (DEX). By adding $500K worth of $GHST and $500K worth of Ethereum to a liquidity pool on Aerodrome, we aim to deepen liquidity and attract more users to the platform. Additionally, we propose allocating 100K GHST worth of bribe incentives to further encourage participation and engagement.

Rationale:

Increasing Liquidity: With GHST recently launching on Base, we have a responsibility to help ensure adequate liquidity for traders on Base. The proposed allocation of $500K worth of GHST and $500K worth of Ethereum into a liquidity pool on Aerodrome will significantly improve the depth of liquidity for trading on Base. This will allow for more efficient trading and reduce price slippage, making the Aavegotchi ecosystem more attractive to both existing and potential users.

Incentivizing Participation: By allocating 100K GHST worth of bribe incentives, we aim to encourage more users to engage with the Aavegotchi ecosystem on Aerodrome. These incentives will be distributed as rewards for veAERO holders in exchange for them voting to increase the allocation of AERO rewards for the GHST-ETH pool.

Earning AERO token for the DAO treasury: Aerodrome is the leading native DEX on Base, and with Aavegotchi making inroads into Base and Gotchichain settling to Base, it makes sense for the DAO to have a stake in the chain’s success. Since Base does not have a native token, tokens like AERO can be seen as proxies for the chain’s growth.

Proposal Details:

Allocation of Funds: The proposal calls for the allocation of $500K worth of GHST and $500K worth of Ethereum from the AavegotchiDAO treasury to be used for creating a liquidity pool on Aerodrome.

Distribution of Incentives: The proposal also includes the allocation of 100K GHST of bribe incentives to be distributed among veAERO holders on Aerodrome. These incentives should be distributed in two tranches of 50K GHST each over a period of one month.

Implementation Timeline: The proposal aims to have the liquidity pool established and the bribe incentives ready for distribution within 14 days of the proposal's approval. The AavegotchiDAO foundation should be responsible for overseeing the implementation process and ensuring that all necessary steps are completed in a timely manner.

Source of funds: $500K worth of ETH should be sourced by converting DAI from the DAO Liquidity wallet into ETH. $500K worth of GHST should be obtained by reducing the DAO’s 80-20 LP on Balancer to obtain enough GHST. Both GHST and ETH should be bridged from Ethereum to Base via the canonical Superbridge or Base Bridge (whichever is easiest).