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CryptoPhunksCryptoPhunksby0xf34FB129f2d2767D8202E349439967C2D1F98CE40xf34F…8CE4

Prop 23 NFTX liquidity injection

Voting ended over 3 years agoSucceeded

Hi Everyone! - I would like to propose a $50k liquidity injection into nftx vault. I think this will help stabilize the pool, reduce current huge spread (20%) between buy and sell and make phunks a more liquid asset overall. There are several ways to approach this: One way is doing a one-of way injection, meaning buying up $PHUNK token for $25k in one go what will impact nftx vault price for approx 40% net positive. Other half ($25k) would then be converted into ETH and provided as liquidity into sushiswap liquidity pool. Hi Everyone! - I would like to propose a $50k liquidity injection into nftx vault. I think this will help stabilize the pool, reduce current huge spread (20%) between buy and sell and make phunks a more liquid asset overall. There are several ways to approach this: One way is doing a one-of way injection, meaning buying up $PHUNK token for $25k in one go what will impact nftx vault price for approx 40% net positive. Other half ($25k) would then be converted into ETH and provided as liquidity into sushiswap liquidity pool.

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Other way would be to break up the injection into 5 different events, to have smaller impact into short term vault price and avoid people taking advantage to arbitrage. Adding $5k worth of $PHUNK tokens spread into 5 events would have approx 11% net positive impact each time.

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Right now there is too much risk if larger stakers were to pull out liquidity out of the pool that would cause the phunk price to crash aka further increase the already huge spread (20%) between buy/sell. The point is to add to the liquidity to the ecosystem and receive yield for activity of the pool. Risk of impermanent loss is still there but if phunk price flies, its good for community & treasury and will result net positive since treasury can always harvest rewards in form of $PHUNK token. Also lowering spread will theoretically generate more volume.

I have been LP staking since last November and it has been one of the best returns I've had in the NFT market.

Personally, this will hurt me as the 2nd highest staker (my rewards will drop, and the APY will decrease) but I think it will be beneficial for the future phunk ecosystem.

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Links below: SWAP USDC for PHUNK token https://app.sushi.com/swap?inputCurrency=0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48&outputCurrency=0xB39185e33E8c28e0BB3DbBCe24DA5dEA6379Ae91&chainId=1 ADD LIQUIDITY https://app.sushi.com/legacy/add/ETH/0xB39185e33E8c28e0BB3DbBCe24DA5dEA6379Ae91?chainId=1 NFTX VAULT https://nftx.io/vault/0xb39185e33e8c28e0bb3dbbce24da5dea6379ae91/buy/ YIELD POOL AND STATS https://yield.nftx.io/pools/0xb39185e33e8c28e0bb3dbbce24da5dea6379ae91/

Off-Chain Vote

Yes
89 PHUNK73.6%
No
32 PHUNK26.4%
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Timeline

Sep 06, 2022Proposal created
Sep 06, 2022Proposal vote started
Sep 16, 2022Proposal vote ended
Oct 26, 2023Proposal updated