cLQDR bid proposal

Intro This proposal is for fBEETs holder to determine if BeethovenX should put forward a proposal to take over the management of cLQDR. It will talk through the management requirements and the benefits it brings to the protocol together with the potential downsides. cLQDR holders will vote on who will take over the management of it and this proposal seeks approval to submit a bid

This proposal looks at cLQDR only, it does not look to request the management of MOR.

Motivation Growth Defi has announced that it is leaving the Fantom network. This decision leaves a number of cLQDR holders in the lurch as there is no longer a team around to manage the product.

So what is cLQDR, how could we potentially help and what would the benefit be to us

What is cLQDR

cLQDR is a wrapped token derivative built on top of xLQDR and has the following functions: Allow users to sell their locked xLQDR position on a secondary market Compounds all the rewards (cLQDR goes up vs LQDR overtime) As a cLQDR holder you profit from both the rewards, the bribes that xLQDR holders receive and the performance fees collected through strategies Creates constant buy pressure for LQDR and perpetually locks the supply it controls How could we potentially help

The main aim would be to allow cLQDR holders to continue to either trade or hold their cLQDR without fear that liquidity in the market will dry up. At BeethovenX we already offer the best trading experience for cLQDR and the aim is to continue providing this experience while maintaining as many of the current cLQDR rewards as possible.

Currently cLQDR holders get: 20% performance fee from MOR vault strategies (this will no longer continue) Rewards from Liquid Driver Revenue sharing vaults Rewards from bribes (both layer 1 and layer 2)

As part of this set up, a 12.5% management fee is applied to the gained cLQDR and allocated to veGRO holders

What the BeethovenX would offer: Delegation of all layer 2 voting power to Liquid driver. This would be the voting power xLQDR holder in gauge systems of inspirit, veHND or any other equivalent. Bribe returns will be auto-compounded into cLQDR Rewards from Liquid Driver Revenue sharing vaults will be auto-compounded into cLQDR Redeployment of Pirate in C using the latest pool factory technology, this would be an updated metastable pool that allows for protocol fee on the yield. Use up to 25% of the LQDR master gauge voting power to direct LQDR emissions to the new pool Reduction of the 12.5% management fee previously, going forward this would be held at 7% The redeployed Pirate in C pool will form part of the "Core Pool" model initially outlined in BIP 24. This means that protocol fees earned from that pool would be used as voting incentives for it to attract emissions. For as long at Beethoven has control of cLQDR, it will also get 0.33% of base emissions (currently valued at $7.5k) for each vote cycle

How it would benefit us

There is currently over 500k LQDR in the cLQDR contract. Taking over the management and maintenance of the cLQDR would give us the right of use to that LQDR. Through that process we would be able to direct a significant amount of emissions in Liquid driver’s master gauge system, which could be used to incentivise pools across both Fantom and Optimism.

It would also introducee: Additional revenue through the protocol fee taken on the cLQDR liquidity pool, Management fee charged for maintenance and It would see us bring a sizable balance onto the Treasury Balance sheet.

Risks

If BeethovenX takes over cLQDR, it has the responsibility of maintaining the peg of cLQDR in the long run, and may potentially need to incentivize liquidity of cLQDR for the purpose.

Impacts

Team - Would need to develop a UI for cLQDR holders as well as the maintenance of the process.

Treasury - at the time of writing, it would be taking on a little over $600k worth of LQDR

Liquidity Committee - Will need to determine which pools to allocate LQDR votes towards

Specification

Team would need to: Create a UI for cLQDR holders and Deploy a revamped version of the Pirate in C pool

Execution Plan

If the community votes yes, a proposal will be made to the cLQDR community to take over the management and maintenance of their contract