Summary

The goal of this proposal is to authorize Cerebrum DAO to create initial liquid trading markets for NEURON on decentralized exchanges (DEX) within the Ethereum ecosystem.

The rationale for doing so is to:

(a) broaden access for new parties to acquire NEURONs and become members of the Cerebrum DAO community, (b) establish liquid trading markets for NEURON to benefit NEURON holders and the DAO, and (c) provide NEURON holders a way to earn fees on their NEURONs if they choose to add to the liquidity of pools.

Considerations

The following are the core considerations for this proposal:

Amount of liquidity. We need the flexibility to provide sufficient liquidity in relation to our circulating market cap - a minimum of 10% of circulating market cap at the time the pool is established is a rule of thumb. This may need to be modified over time to support market cap appreciation.

Depth of liquidity and range of support. If we provide full range support we don't have to actively manage or worry about cliffs, however, that can lead to slippage. The opposite is true if we set a range of liquidity. The DAO should consider support for both, but it would need the flexibility to actively manage the range strategy.

Support on L2 (e.g. Aerodrome on Base) for lower fees and broader access. While the initial objective is to move quickly, the L2 strategy may take a little longer to arrange due to complexities of bridging and to understand how to maximize incentives on L2 platforms. The DAO will need some liquidity allocation and flexibility to decide on the L2 platform, liquidity amount, and strategy.

Proposal

Approving CDP-4 will enable the following:

1. Authorize Cerebrum DAO to provide up to 100 ETH and 2.3b NEURON for liquidity support in Uniswap v3 Pools on MainNet and potential L2 Pools.

2. Authorize the Cerebrum DAO Coordination Working Group to set and modify liquidity positions and add Uniswap v3 and L2 Pools within the liquidity amounts approved under this proposal (100 ETH and 2.3b NEURON in total ). The Working Group will seek to create and update liquidity positions that provide liquidity depth for NEURON within trading ranges while supporting price discovery. This authorization remains in effect until a future CDP proposal removes or modifies it.

3. The Cerebrum DAO Coordination Working Group shall commit to post a minimum of 70 ETH and 1b NEURON to Uniswap v3 within 3 days of this proposal being approved.

4. The Cerebrum DAO Coordination Working Group will proactively work with partners such as Bio.xyz to provide additional liquidity support on Uniswap v3 and L2 pools alongside the DAO.