CIP003 - Add MATIC to OtterClam’s treasury

Summary Introduce MATIC bonds as a way of accumulating MATIC for the Treasury, which we see as the logical next step towards our goal of becoming a decentralized currency.

Proposal

• Add a new bond type - MATIC bonds
• Target 5% of Treasury risk free value (RFV) Example: If Treasury RFV is 1.7 million, we would aim to accumulate $85,000 of MATIC

Important Notes

• MATIC would be assigned a risk free value of 0, meaning we wouldn’t mint against it
• CLAM will no longer be backed by just 1 unit of risk free value ($1), but also by the proportional amount of MATIC in the treasury. If this proposal passes, you can visualize the new backing of CLAM as 1 CLAM = $1 + 0.xx MATIC (+ a fraction of any other asset we hold in the Treasury)
• This proposal includes approval of future bonds for liquid staking versions of MATIC (aMATICb from Ankr Protocol, stMATIC from Lido, etc.) at such time that they are widely available on Polygon and reach a free floating supply of greater than 400,000 MATIC in liquidity pools (SushiSwap, QuickSwap, etc.).

Motivation OtterClam’s goal is to become a decentralized currency.

With that in mind, and given that our fates are already intertwined as we live on its chain, acquiring MATIC seems like a logical first step towards our vision. This would also be a way for us to reduce our dependence on USD and USDC, as well as to demonstrate the alignment of our values with those of the Polygon community.

As for how to do it, the introduction of MATIC bonds makes the most sense. Continuously taking in MATIC through bonds would allow us to effectively dollar-cost average into our MATIC position, removing the subjectiveness from the timing of our entries.

Currently, we’re sitting at around 1.7m risk free value, so the target would be 10% of that which is $85,000. As the RFV grows, so does our allocation in dollar terms.

The initial target of 5% Treasury RFV, will come in as bond sales. As the Treasury RFV grows, the 5% Matic target will also grow as our RFV grows past 1.7M and will be managed by increasing /decreasing the CLAM-MATIC LP bond discount to draw in additional MATIC when we drop below 5%.

Introducing MATIC into the Treasury will open up partnership opportunities in the future and it showcases that we are determined to have a stake in the Polygon ecosystem.

We’ll introduce CLAM-MATIC LP on QuickSwap after we accumulate target MATIC, so $CLAM can become a central token swap on Polygon.

Vote For: Add MATIC to our Treasury through MATIC bonds Against: Don’t add MATIC to our Treasury

Note

1. The discussion: 24 hours, start from 12/3 15:00 UTC - 12/4 14:59 UTC
2. The vote: 24 hours, start from 12/4 15:00 UTC - 12/5 14:59 UTC
3. All sCLAM holder can vote