[TMP #2] - Authorize Treasury Council to Lock UwU-Eth LP Tokens Into

Scope:

Authorize the Treasury Council to lock UWU-ETH LP tokens using current and future rewards, until voted otherwise by the Treasury Council or DAO.

Current Governance Limitations:

Currently, WIP #14 requires explicit DAO approval for “long term defined lock ups”. By voting yes on this proposal, the DAO would be giving permission to lock the farmed UWU tokens in the LP (pool2) until voted otherwise by the Treasury Council or DAO. The minimum locking period on UWU-Eth LP tokens is 8 weeks. After the 8 weeks, tokens are permanently unlocked and available to exit.

Objective:

• Utilize the UWU acquired from the farm and private OTC deal to capitalize on the LP (pool2) yield at the discretion of the treasury council.
• Grow the size of the allocation while the yield is high, since there are limited high yielding farms currently in DeFi.
• Lower our cost basis on OTC tokens that were purchased.

Rationale:

It is believed that it would be in Wonderland’s favor to utilize the UWU rewards while the yields are high, since there are currently limited high yielding farms in DeFi.

Utilizing the rewards would also help maintain a low cost basis on our UWU by acquiring additional UWU and other tokens from the LP rewards.

This would also prevent the recently purchased UWU tokens from remaining idle during the full vesting period of 24 months.

UWU Lend Background:

UwU Lend is a liquidity market that offers depositing and borrowing forked from AAVE v2. Users earn interest on deposits and pay interest to borrow. The protocol was founded and is managed by Sifu.

Risks/Considerations:

UWU Directional Price/Locking Risk:

UWU price could continue to drop, potentially lower than our cost basis over time. New LP tokens added to the LP (Pool2) will be locked for a total of 8 weeks preventing the sale of locked tokens during this timeframe. After the 8 weeks, tokens are permanently unlocked and available to exit.

Smart Contract Risk:

UWU is a fork of AAVE v2. While UWU has not undergone its own audit yet, it is forked from audited code.