LIP-003 : Swapping SPIRIT rewards for linSPIRIT

LiquidDriver is currently preparing for SpiritSwap’s upcoming shift to a full gauge model. We have managed to acquire 9M inSPIRIT through linSPIRIT in a mere month, which currently makes us the largest inSPIRIT holder.

Once SpiritSwap moves all its farms to gauges, our inSPIRIT holdings will have a considerable impact on our revenue and liquidity:

• We will be able to use our inSPIRIT to boost all the pools from SpiritSwap, which will drastically increase revenue for xLQDR holders
• We will be able to control a significant share of SPIRIT emissions, which we could redirect to the upcoming LQDR-FTM pool on SpiritSwap. This in turn would drive considerable demand for LQDR and increase our liquidity depth.

These points in mind, we would like to speed-up our inSPIRIT acquisition by swapping xLQDR’s daily SPIRIT rewards for linSPIRIT.

Given current numbers, we estimate that we could acquire additional 2.6M - 3M inSPIRIT per month just with the daily xLQDR rewards.

So far, the linSPIRIT peg has remained very strong and stayed within a range of 1%. If at any time the peg deviates by more than 1.5%, we will switch the strategy to buy back linSPIRIT instead of using the LiquidSwapper, until we’re back at the exact peg.

Should we swap the daily SPIRIT rewards from the revenue-sharing Vault for linSPIRIT ?