Tokenomics - Optimism Liquidity Implementation

Author: Icedcool🏴 Squad: Tokenomics Department

TLDR

Challenge: In Optimism L2, there is currently no DAO-owned liquidity. L1 Gas costs are increasing, and BanklessDAO Subdao operations are growing on Optimism. To address this, we propose migrating 5 ETH and ~2.2M BANK from mainnet to establish a full range position on Uniswap V3, creating an initial liquidity pool of ~$20k. Additionally, an Arrakis dynamic ranged position will be implemented to support contributors interested in providing LP.

SUMMARY

BanklessDAO lacks DAO-owned liquidity on Optimism. With BanklessDAO's expansion to Optimism's Layer 2 (L2), the need for liquidity has grown. To facilitate the utilization of BANK, the Treasury Department proposes migrating $20k of liquidity into a BANK/WETH full range Uniswap V3 position.

This proposal seeks approval from the DAO to implement this liquidity and support Optimism operations.

SPECIFICATIONS

• Migrate 5 ETH and ~2.2M BANK to the Optimism BANK/WETH Uniswap V3 position.

IMPLEMENTATION

The implementation steps are as follows:

1. BDAO multisig will bridge the 5 ETH and ~2.2M BANK to Optimism.
2. The multisig will then deposit these assets into the Optimism BANK/WETH Uniswap V3 position.

After implementation, the liquidity depth will be approximately $20k, facilitating initial Optimism liquidity. The Treasury Department will monitor and analyze the volume and usage. After 3 months, a decision will be made whether to maintain or further deepen the liquidity.

This vote will remain active for 7 days. Pending approval of this vote, it will proceed to snapshot for DAO-wide approval.