Social EGP 28 - Increasing Liquidity for CLEAR via Mainnet Vault

Abstract

This proposal outlines the plan to bridge 3.84 million CLEAR from the DAO Safe on Arbitrum (arb1:0x5C711DB90dEc0a5B81C626968DEa4187a7f9C1F2) to Ethereum mainnet and deploy these funds into the Arrakis mainnet vault.

The goal is to enhance buy-side liquidity, reduce price impact for CLEAR purchases, and leverage organic trading volume to convert CLEAR into wETH over time, thereby strengthening base asset (wETH) liquidity.

Motivation & Rationale

Following the successful migration of NEXT to CLEAR, the DAO now holds a significant amount of CLEAR in the DAO Safe on Arbitrum. Rather than leaving these assets idle, deploying them into the mainnet vault would provide immediate liquidity benefits:

• Improved Market Depth: Increasing buy-side liquidity will reduce slippage and price impact for market participants purchasing CLEAR.
• Organic Liquidity Growth: Due to our bootstrapping strategy, the vault will use organic trade volume to gradually convert CLEAR into wETH without causing any negative selling pressure, improving base asset liquidity over time.
• Efficient Capital Utilization: Instead of leaving 3.84 million CLEAR dormant, repurposing these funds will contribute to a more robust trading environment.

While future liquidity improvement strategies can be explored, this proposal offers a quick and effective way to enhance market conditions for CLEAR immediately.

Specifications

1. Bridging Funds to Mainnet:

• The 3.84 million CLEAR currently held in the DAO Safe on Arbitrum will be bridged to Ethereum mainnet.

2. Deployment to Arrakis Mainnet Vault:

• Once on mainnet, these tokens will be deposited into the Arrakis mainnet vault to improve liquidity.

Steps to Implement

1. Bridge 3.84 million $CLEAR from DAO Safe (arb1:0x5C711DB90dEc0a5B81C626968DEa4187a7f9C1F2) to Ethereum mainnet.
2. Deploy the bridged $CLEAR into the Arrakis Mainnet Vault (https://etherscan.io/address/0xfe2a079e068f78884a36a2adb4cb1712706822ae).
3. Monitor liquidity improvements and assess further optimization strategies in future proposals.

Overall Cost

• No additional costs are anticipated aside from 3.84 million CLEAR currently in DAO safe on Arbitrum