SLURP-51 | Establish DAO-Owned-Liquidity for the UniV3 SDL/LINK Pool

Summary/Objective This proposal seeks to establish a permanent, DAO owned Liquidity (“DoL”) liquidity “floor” in the UniV3 SDL/LINK pool using existing DAO treasury assets.

Rationale The Uniswap V3 SDL/LINK pool (TVL ~$800,000) exhibits concentrated liquidity among a small number of LPs. This poses a structural risk from potential large-scale liquidity withdrawals, which would increase slippage and degrade trading conditions in “risk off” scenarios. The DAO treasury currently holds ~681 LINK earned from the SLURP-43 staking initiative. This proposal seeks to take these LINK and match them with the treasury SDL and inject ~$34K as DAO-owned-liquidity in the SDL/LINK UniV3 pool to kickstart this pilot.

By establishing a DAO-owned-liquidity (“DoL”) position we can: Create a Stable Liquidity Floor: Kickstarting a baseline level of liquidity that is always present and controlled by the DAO, reducing dependency on mercenary capital(essentially eliminating “rugpull“ risk in the medium to long timeframe). Improve Treasury’s Capital Efficiency: Pair the LINK earned from reSDL with treasury SDL to create a productive, fee-earning liquidity position that directly supports our ecosystem. Boost The Pool’s Depth: A deeper pool allows for larger trades with less price impact, making it easier and more attractive for new participants to buy and sell SDL. It is important to note that all the existing long term LP positions are in profit, and we expect this position to be profitable as well on a longer timeframe.

Specification/Execution Allocate ~681 stLINK from the DAO treasury and swapping the stLINK to LINK via Curve.

Allocate an equivalent USD value of SDL from the DAO treasury, determined at the time of execution to match said LINK.

The DAO multi-sig will combine the allocated assets and deposit them into the UniV3 SDL/LINK (1% fee tier) pool.

The position will be a full-range LPing to ensure constant liquidity across all price points.

The resulting UniV3 LP NFT will be held by the DAO treasury.

Any modification to this position requires a new, separate governance vote.

Financial Impact/Reasoning Treasury Outlay: ~731 $LINK (approx. $16,000) and ~$16,000 in $SDL.

Total Liquidity Provided: ~$32,000.

Pool TVL Increase: ~4.25%, based on current $800,000 TVL.

DAO Revenue: Trading fees in the form of LINK and SDL that are generated by the LP position will eventually accrue to the DAO treasury once claimed.

Risk Mitigation: Establishes a permanent liquidity base controlled by the DAO, reducing dependency on external and potentially transient capital.

Capital Efficiency: Deploys idle treasury assets ($LINK, $SDL) into a productive, fee-earning position that supports core protocol infrastructure - on-chain SDL liquidity.

Market Integrity: Increases pool depth, which reduces price impact for traders and improves overall market function.

Conclusion This proposal is intended to be the continuation of a broader strategy we have employed with stLINK/LINK and wstPOL/wPOL already - of building up protocol-owned liquidity(PoL) and DAO-owned liquidity (DoL). Any future DAO-led liquidity provisions using newly earned yield or other treasury assets will require a separate governance proposal and vote.