Should an APW/TOKE swap be performed to ignite the Tokemak reactor?

Summary

Swap $3M worth of APW for $3M worth of TOKE to ignite the APW Tokemak Reactor

Background and Motivation

The (🍇,🍷) community has recently launched a reactor on Tokemak and APWine now aims to ignite the reactor to supercharge liquidity.

The start of this long term journey must begin with a APW <> TOKE Swap which will:

• Align incentives between communities • Ensure that we have voting power to increase the TOKE rewards for the APW reactor • Diversify the APWine Treasury • Stake TOKE and direct liquidity to the APW/ETH pair

An active APW Reactor on Tokemak will ultimately increase protocol liquidity and open the door for unique opportunities within the Tokemak ecosystem. APWine is ready to swap $3M worth of APW for TOKE to ignite the Tokemak Reactor. The $3M will serve as a reserve fund for Tokemak that can be used to dampen the highly-unlikely event of impermanent loss for users. We anticipate this will be an ongoing liquidity farming program, and based on the success will likely repeat. APWine recognizes the innovative and disruptive “liquidity as a service” Tokemak offers to the DeFi space at large and we are eager to add additional functionality on our side by facilitating a trading market for Tokemak Yield. This collaboration ultimately increases the utility and value of APW as traders/farmers have increased liquidity, trading pairs, and less slippage to worry about. Furthermore, APWine is working on deploying across different L1’s, so the liquidity can be utilized among other communities.

Consideration

For the provision of these services, the parties agree that within one day of this Proposal being approved that:

$3,000,000.00 notional value (USDC) of APW will be sent by the APW Core Contributors to the Tokemak treasury; and

$3,000,000.00 notional value (USDC) of TOKE will be sent by Tokemak to the APWine treasury.

Execution will be based on the current 7-day moving price average with no discount. Further, It is mutually understood that this will be a long-term collaboration and funds will not be used to speculate, sell, or distribute outside of this liquidity incentive for the time being.

The APWine DAO will be able to indirectly utilize the treasury TOKE tokens to vote for redirecting liquidity in the future. TOKE will be sent to the DAO once the reactor officially ignites and announcements will be made.