Background

The latest Treasury breakdown can be found here.

The Forth DAO is currently holding 12M unused AMPL. The historical barrier to putting these assets to use has been that it required matching pair tokens for DEX pools. Now with the SPOT system, we can consider the Rotation Vault (stAMPL) a form of liquidity that can help growth, and this can be done single sidedly. The DAO is well positioned to contribute to the ecosystem in this way.

The DAO currently holds some stAMPL, but not much: 144.5 stAMPL, representing ~4.3% of deposits or 517k AMPL collateral.

Most outside users will be attracted to the rewards of Bootstrap or the Geysers, but the DAO’s participation would hamper the intent to grow awareness. However, the DAO can still enable those programs by supporting the vault. Vault deposits enable SPOT supply growth for Bootstrap, and this can help fuel the evergreen cycle.

Execution

I propose allocating up to 5.5M AMPL for depositing into the vault.

This can be done by embedding an ERC-20 approval operation into a governance action. Another option, if we want to fast-track assets into the vault, is to arrange for an AMPL -to- stAMPL trade with the Foundation. I.e. Provided there is general support, the Foundation can deposit first, then sell the stAMPL position to the DAO 1 for 1 with respect to the underlying AMPL as the proposal executes.

In the case of the deposits route:

• DAO will only deposit when the DR < 0.95. This gives a (slight) opportunity for new entrants to come in first.
• DAO will not cause the DR to exceed 1.0 from its deposits.