Allocate $1M to SMART Yield jToken Secondary Liquidity

With the launch of the BarnBridge Fuse pool via Rari Capital, we are now able as a DAO to curate our own lending market. Importantly, this provides a route forward for our SMART Yield and SMART Alpha assets being used as collateral. For a BarnBridge product ERC-20 to be eligible for us to include in our Fuse pool, it must have a price feed and a minimum of $500k in secondary liquidity. Uniswap v3 addresses both requirements.

In discussion with the community, a number of users pointed out that we could use our DAO funds to provide liquidity for SMART Yield jTokens to begin with. No user provided an argument against doing so.

• https://forum.barnbridge.com/t/bootstrapping-our-rari-fuse-pool/435/3

This vote is to determine whether $1M should be allocated from the DAO treasury for this purpose, and if so, what the prioritized jTokens should be. The reasons for doing so, in short, are:

• DAO earns LP fees for providing liquidity
• jTokens gain added utility from the borrowing power available on Rari
• It becomes possible for users to leverage loop into SY

As for what jTokens to prioritize, the clearest route forward looks to be a combination of bb_aUSDC (the most liquid Aave pair, and no longer incentivized) and either bb_cDAI, bb_aDAI, or bb_aRAI.

• bb_cDAI still has an ongoing Sushiswap Onsen pool, which would represent an opportunity cost for users entering the Rari pool instead
• bb_aDAI has less liquidity than its USDC counterpart, but proved to be popular while incentives were still running
• bb_aRAI is a new asset and project, but it consistently has high APRs and their community has signaled interest in utilizing the borrowing functionality if available

Please use the shared forum post to express your views on the matter. If the vote isn't overwhelmingly (80-90%) in favor of a specific outcome, it can go back to the drawing board.