Move To A Protocol Owned Liquidity Model

$CRYSTL Governance Proposal #5

After some consideration and analysis, we would like to put forward an additional 5th proposal to the community to decide what to do with the remaining emissions that are being moved to the Cronos network. Move To A Protocol Owned Liquidity Model:

Option A: Use the remaining $CRYSTL emissions to fund on-demand bonding for $CRYSTL-$CRO under the DeFi 2.0 protocol owned liquidity model based on Olympus DAO.

Option B: Do not use the remaining $CRYSTL emissions for bonding protocol owned liquidity.

With Option A, Crystl Finance will implement a dedicated feature where users may bring their $CRYSTL-$CRO LP tokens to exchange for $CRYSTL and redeem at a discount over a few days. The $CRYSTL-$CRO LP tokens accumulated this way will be locked in a treasury and will serve to provide permanent liquidity on Cronos. As more investors continue to bond for $CRYSTL, the treasury is expected to eventually accumulate a high degree of liquidity. With deeper liquidity, the conditions will become favorable for the price of $CRYSTL to increase. Furthermore, the volatility of the $CRYSTL token will be reduced and price impact even for large trades will become negligible as the liquidity continues to grow.

With Option B, we will not proceed to implement a bonding system. Instead, we will proceed by obtaining input from the community on how to best use the remaining $CRYSTL emissions on Cronos.

Link to Full Article on Proposal 5: https://crystlfinance.medium.com/pol-governance-proposal-5-13e6e4b9c2c7