reproposal of diversifying revenue stream but the eth must be newly purchase with dai and does not conflict the node proposal.

This proposal is a followup from Diversifying Revenue Streams and Increasing Revenue for 1:1 Burn+Buyback Ratio with changes. (https://snapshot.org/#/decentralgames.eth/proposal/0x181f79fc27bea9e0fbc8f06c0a3b8f903d5e7215f36f4168c810addd6c4f5c1e) TLDR: it is a copy but specifies that the eth used for the lp must be purchased over time with dai and will not interfere with the node proposal.

The idea behind this proposal is to use some of the 4mil+ dai we have left to generate a revenue stream big enough that is capable of stablizing the price of ice at its current point so we get an increase in player growth and less players quitting. It is supposed to tackle our short term issues while we would need 5+m dai in eth nodes to generate the same revenue. Short term issues are attracting new players is difficult because ice keeps dropping while not taking out funds directly to purchase more ice.

Proposal:

Title: Diversifying Revenue Streams and Increasing Revenue for 1:1 Burn+Buyback Ratio

Background: The DG Dao currently generates around 9k in revenue weekly from different sources. In order to achieve a 1:1 burn+buyback to mint ratio, the revenue needs to be increased by 2 times. The idea is to buy time for the team to implement major changes while keeping a stable ice price, which will lead to more new players joining and less players quitting.

Proposal: In order to diversify the revenue streams, I propose adding liquidity on the uniswap v3 usdc-weth pool (https://defillama.com/yields/pool/665dc8bc-c79d-4800-97f7-304bf368e547). This is a very safe way of generating more revenue while not being heavily exposed because it is paired with usdc (IL calculator https://dailydefi.org/tools/impermanent-loss-calculator/).

The average APY of this pool is around 30% and works the same way as the ice-usdc, the only difference is that the pool is operated by uniswap V3 and has 185Mil liquidity already in.

With some of the new changes, around 600k ice per day will be more earned than burned. This means that around 600k ice needs to be purchased, where we currently purchase half of that. In order to increase this to the breakeven, the revenue needs to grow to 18k on average.

Using the calculation of 30% APY, this would mean that 1.55M$ total should be added as WETH-USDC liquidity 30% of 1.55Mil = 465000 / 52 = 8950. (can be adjusted by the team if the 1:1 ratio is fulfilled with less then 1.55M$)

In uniswap v3, you have the option to use concentrated positions. This means that you can provide the min price and max price yourself to maximize the returns. I suggest putting a min price of 300 and a max price of 3000. This means that if eth were to drop to 300 all of the usdc would be converted to eth and vice versa if eth goes to 3000.

Because of this concentrated position, the rate is not exactly 1:1 but rather 0.6:1. This means that about 1Mil usdc can be added while being paired with 370 eth (550k~). (I think these numbers are doable without having too much risk as there is 4+m dai)

All of this revenue will go toward buying back ice while not taking out funds from the treasury to buy ice directly.

The eth used for this proposal must be newly purchased with dai over time and will not interfere with the node proposal.

Conclusion: Adding liquidity to the uniswap v3 usdc-weth pool is a safe and effective way to diversify revenue streams and increase revenue for the 1:1 burn+buyback ratio. The concentrated position option in uniswap v3 allows for maximizing returns while minimizing risk. All generated revenue will be used for buying back ice.