Add to New DG-ETH LP Position

Background

The DG DAO currently provides ~$2.8M in New DG-ETH LP on Uni-v2, and we still have ~$2.3M in Old DG-ETH LP there as well. Since we end LP rewards for Old DG upon token split and as holders have migrated ~70% of Old DG to New DG in the week post-split, we have seen Old DG LP fall from ~$7M to ~$2.3M. This is expected.

Per previously passed proposal #QmfEtes, now that the DG DAO can afford to its preferable for us to provide liquidity ourselves instead of paying for liquidity with increased DG emission (rewards). We also have open proposal #QmcSKku to potentially contribute liquidity. The DG DAO Gameplay Hot Wallet has ~200K MANA.

Proposal

Convert 100K MANA from DAO Gameplay Hot Wallet to ETH, pair with New DG from DAO DG Wallet and add ~$700K to the DAO's New DG-ETH LP Position in Liquidity Provided.

Rationale

This proposal suggests targeting > $5M as a sustainable level of ETH mainnet DEX liquidity for DG, and converting this MANA would help us get there. The specific target figure comes from conversation with IndexCoop who sets $5M for their bar for continued inclusion in their Indexes (e.g. $MVI) and inclusion in new Indexes. In general though, outside of that specific use-case, slippage is pretty high with the level of liquidity we have now for New DG, and feedback received from investors and community members is that this slippage makes it challenging to trade large positions.

The remaining 100K MANA in the Gameplay Hot Wallet would be more than sufficient to back bets, and, as we continue to accumulate MANA, we can continue to also use this source of funds to pay for wearable submissions per proposal #Qme1xWn.

Links

New DG-ETH LP on Uni-v2: https://v2.info.uniswap.org/pair/0x3df70e5b6edead5277590d3de5731d17f46e043b

Old DG-ETH LP on Uni-v2: https://v2.info.uniswap.org/pair/0x44c21f5dcb285d92320ae345c92e8b6204be8cdf

DG DAO Treasury Contents: https://decentral.games/dg/treasury