Should the DAO Treasury provide liquidity to SushiSwap?

The $LONDON token is a key part of the $LONDON DAO with intended utility in the upcoming burn proposal and future projects within the ecosystem. Without sufficient liquidity on Automatic Market Makers (AMMs) it will be difficult for new participants to get hold of meaningful amounts of the $LONDON token in order to be able to participate.

This proposal requests that we make available funds from the $LONDON DAO treasury and provide liquidity on the Sushiswap AMM (app.sushi.com)

Whilst there is already some liquidity provided by community members, it is not sufficient to allow large trades without moving the price of $LONDON substantially (known as price impact).

With the DAO treasury providing liquidity, larger trades can take place and a minimum amount of liquidity can be guaranteed at all times as opposed to solely relying on a fluctuating supply of community provided liquidity, which could potentially drop to zero.

It also shows that the DAO is serious about the future of the project by allocating a large sum toward this.

The following spreadsheet shows price impact values for a range of different liquidity options:

https://docs.google.com/spreadsheets/d/1fpg8j6Pzz4VIzMVlhQt4zGop44fLMrbpwc36IsfaHmk

Additionally:

If at the time of provision the current price of $LONDON is greater than $0.03 (i.e. more than ~17 ETH is required for option 1 or ~21.5 ETH for option 2 at time of writing) an attempt will be made to alter the price by selling $LONDON into Sushiswap before the liquidity is added, this will also require coordination with the primary liquidity provider (biz.davidsun.eth) to remove their liquidity before doing so. This may allow additional $LONDON to be added to the Sushiswap pool without exhausting the DAOs entire supply of ETH - assuming arbitrage bots don't impact the price again first. The amount of $LONDON used to perform this will not exceed 10% of the supplied $LONDON and will be deducted from the liquidity intended for the pool. The additional steps required for this are points 2 and 3 in the following process, if this is not required these steps should be ignored.

Process:

If this proposal is voted in, the provision of liquidity process would work as follows:

1. The DAO's account's guild has appointed david.sun.eth as a representative to manage the liquidity provision.
2. biz.davidsun.eth will remove existing personal liquidity from Sushiswap.
3. david.sun.eth will sell up to 10% of the voted on amount as stated below from the treasury into the pool using https://app.sushi.com/swap to bring the price of $LONDON closer in line with $0.03
4. david.sun.eth will access app.sushi.com and use the following instructions to add the treasury's liquidity into the pool: https://help.sushidocs.com/guides/how-to-add-tokens-to-sushiswap-exchange-as-an-lp The exact ratio of ETH to $LONDON will vary depending on the balance of the liquidity pool when adding, so david.sun.eth will attempt to provide the specified $LONDON amount and equivalent ETH according to the option voted upon whilst not exceeding 30 ETH.