Univ3 $GIV Liquidity with $oneGIV

ICHI has created a $GIV Vault for the Giveth community to create Univ3 liquidity and earn. We are proposing that $oneGIV deploy its 6M idle $GIV tokens to the vault to earn and create deep $GIV liquidity.

Background and Reasoning:

Over the past six months, $GIV’s low liquidity on Ethereum mainnet has hurt the projects’ ability to retain value within its ecosystem and provide low slippage trades for $GIV buyers and sellers. This low liquidity is due to the high amount of Impermanent Loss that Liquidity Providers (LPs) are exposed to and the large amount of $GIV the DAO has to use for rewards to cover this gap. The Angel Vault was helping with this but it is no longer being incentivized and the liquidity has plummeted. With this proposal, ICHI has created a $GIV Vault that will enable LPs (any $GIV holder) to provide $GIV liquidity to help Giveth and earn without the need for a farming rewards program. Additionally this will create the ability for $oneGIV to deploy its $GIV treasury tokens to both earn and create liquidity for $GIV.

Goals:

• Create more on-chain liquidity for the $GIV token.
• Enable the Community Treasury, $oneGIV treasury, and any $GIV holders to earn with their token while maintaining a long position on $GIV.
• Enable $GIV tokens to help the Giveth community.

Proposal:

• ICHI to create a Vault on Ethereum Mainnet for the GIV token, concentrating $GIV liquidity in an efficient way, enabling yields to increase without the need for farming/bribes/etc.
• ICHI to keep IRR above 15% for the first 12-month within deployment constraints described on the recent ICHI Vote.
• oneGIV to deposit 6M GIV tokens into the Vault.

Vault benefits for Giveth:

• Decentralized Market Making at no cost to Giveth
• Single-sided deposits of the $GIV token
• Capital efficient earnings through concentrated liquidity - earn higher fees/yield on your $GIV token and aggregate more of it
• Liquidity management allow “deposit and forget” experience
• Mitigation against impermanent loss for depositors due to single-token deposits and uneven pool distribution.
• Liquidity to support Giveth protocol
• Non-custodial LP token received so funds are always held Liquidity Providers (whether it be $oneGIV multisig or others).

Risks:

• Impermanent Loss can be sustained through creating liquidity on AMMs