Should we purchase JOE using the treasury?

Context

Trader Joe has recently done a massive revamp to their tokenomics, introducing a new token model called “veJOE”. They also recently switched their emissions so that 50% of all emissions go towards veJOE! We believe this is highly bullish for the JOE token and that it will cause similar price action to that of PTP, particularly in advance of when ve-token aggregators come out.

Further, Vector is planning to participate in the JOE wars and has infrastructure set up to aggregate JOE tokens. Staking xPTP and stables on Vector has been an excellent investment for the treasury so far. We would like to put forward a similar proposal as previously done with PTP – we want to purchase JOE and then stake it on Vector. We also think we are doing this much earlier than last time, as the JOE wars have barely even begun to kick off.

We are extremely bullish on the Trader Joe team. They are one of the best teams in DeFi and they continue to innovate and ship high quality products and tokenomics.

The addition of JOE to Vector presents an incredible market opportunity: there is no clear frontrunner in the JOE war, TVL in the boosted farms is enormous, and APRs on these farms are very high (which means high fees for Vector). As large holders of Vector, we should support the protocol as much as we can.

Proposal

The team proposes that a portion of the treasury be allocated towards bootstrapping Vector’s veJOE program. This JOE would be farmed on the Vector Finance protocol to earn $VTX rewards (and $vxJOE from the protocol fees). These rewards would then be returned to MAG token holders through our veMAG program.

The team would like to allocate $1 million in treasury funds to purchase JOE. We would then convert 50% of this JOE on the Vector protocol and provide liquidity for Vector for farming rewards in the form of JOE-vxJOE.

How will this benefit MAG token holders?

The addition of JOE to the Vector Protocol will diversify its utility on the Avalanche network, and help to solidify it as the go-to ve-token aggregator. VTX is likely to become a controlling token of not one but two large stockpiles of governance tokens for the two biggest swap platforms on Avalanche. This in turn will greatly increase the value of VTX allocated to MAG token holders. As a governance framework for JOE comes into place, it is very likely that bribe systems for major JOE holders will develop as protocols seek to control the flow of JOE.

Note

The team has already acquired 106,063.25 JOE at an average price of $1.301 in advance of this proposal. This was an opportunistic buy on the dip and we also don’t want to fill the entire amount after the proposal to prevent front running. Thus, since we have acquired $150k worth so far, we will acquire $850k more to fulfill the full $1m purchase.

The Vote

We’ve decided to use the standard “For, Against, or Abstain” model for this vote. A “For” vote means support of the proposal as stated. “Against” means the voter does not support the proposal. “Abstain” is a vote neither for or against the proposal and indicates that more discussion is needed.